Investor Optimism Declines Slightly As Dow Drops 250 Points

The CNN Money Fear and Greed index showed some decline in the overall sentiment among US investors.

US stocks closed lower on Thursday as investors assessed recent batch of corporate earnings.

Alphabet Inc. GOOGL shares dropped 4.4% on Thursday on continued weakness after the company's BARD AI chatbot gave an incorrect answer in a company ad.

The Dow closed lower by around 249 points to 33,699.88 on Thursday. The S&P 500 fell 0.88% to 4,081.50, while the Nasdaq Composite dropped 1.02% to settle at 11,789.58 in the session.

Investors are awaiting earnings results from Global Payments Inc. GPN, IQVIA Holdings Inc. IQV and Newell Brands Inc. NWL today.

At a current reading of 72.0, the index remained in the "Greed" zone, compared to a previous reading of 73.0.

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.

Read Next: " Amazon, Tesla And 2 Other Stocks Insiders Are Selling