Nasdaq Falls Over 100 Points Amid Decline In Tech Stocks: Investor Sentiment Weakens, Fear & Greed Index In 'Neutral' Zone

The CNN Money Fear and Greed index showed further decline in the overall market sentiment, while the index remained in the “Neutral” zone on Monday.

U.S. stocks settled lower on Monday, with the Nasdaq Composite falling more than 100 points during the session. Nvidia Corp. (NASDAQ:NVDA) shares fell more than 1% on Monday, after recording gains last week.

Stocks recorded gains last week as the S&P 500 jumped 1.4% to record its fourth weekly surge in five weeks. The Dow and Nasdaq also added over 1% last week.

Mereo BioPharma Group plc (NASDAQ:MREO) shares dropped 88% on Monday after the company announced its Phase 3 ORBIT and COSMIC Studies for setrusumab in Osteogenesis Imperfecta did not achieve statistical significance against the primary endpoints of reduction in annualized clinical fracture rate compared to placebo or bisphosphonates, respectively.

On the economic data front, U.S. pending home sales jumped by 3.3% month-over-month in November, following a revised 2.4% gain in October and topping market estimates of a 1% gain.

Most sectors on the S&P 500 closed on a negative note, with consumer discretionary, materials and financials stocks recording the biggest losses on Monday. However, energy and real estate stocks bucked the overall market trend, closing the session higher.

The Dow Jones closed lower by around 249 points to 48,461.93 on Monday. The S&P 500 slipped 0.35% to 6,905.74, while the Nasdaq Composite declined 0.50% to 23,474.35 during Friday's session.

What Is CNN Business Fear & Greed Index?

At a current reading of 49.3, the index remained in the “Neutral” zone on Monday, versus a prior reading of 52.5.

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.

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