Dow Dips Over 300 Points Following Jobs Report: Investor Sentiment Declines, Fear & Greed Index Remains In 'Neutral Zone

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

U.S. stocks settled mixed on Monday, with the Dow Jones index falling more than 300 points during the session as mixed labor market data failed to ignite a fresh wave of risk-on sentiment.

Nonfarm payrolls rose by 64,000 in November, topping expectations of 50,000. However, the unemployment rate climbed to 4.6%, the highest level since September 2021.

Expectations for the Federal Reserve’s January rate decision remained broadly unchanged following the release. Fed funds futures continued to price a 25% probability of another 25-basis-point rate cut, in line with pre-data levels.

On the other economic data front, U.S. retail sales came in flat for October from September, compared to a revised 0.1% gain in the previous month, and down from market estimates of a 0.1% growth. The S&P Global flash composite PMI declined to 53 in December, recording the lowest reading in six months, down from 54.2 in November.

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

The Dow Jones closed lower by around 302 points to 48,114.26 on Tuesday. The S&P 500 fell 0.24% to 6,800.26, while the Nasdaq Composite rose 0.23% to 23,111.46 during Tuesday's session.

Investors are awaiting earnings results from Jabil Inc. (JBL) , General Mills Inc. (GIS) and Micron Technology Inc. (MU) today.

What Is CNN Business Fear & Greed Index?

At a current reading of 46.6, the index remained in the “Neutral” zone on Tuesday, versus a prior reading of 52.3.

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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