The CNN Money Fear and Greed index showed further improvement in the investor sentiment after the US stocks recorded gains on Monday.

All the three major indices recorded gains on Monday, extending gains recorded last week.

At a current reading of 50.0, the index moved to the "Neutral" zone, following a previous reading of 47.0.

What is CNN Business Fear & Greed Index?

The Fear & Greed Index is a measure of the current market sentiment. It is based on the premise that higher fear exerts pressure on stock prices, while higher greed has the opposite effect. The index is calculated based on seven equal-weighted indicators. The index ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greediness.