S&P 500 Gains For Fourth Session On Ceasefire Hopes: Fear & Greed Index Remains In 'Extreme Fear' Zone

The CNN Money Fear and Greed index showed some increase in the overall fear level, while the index remained in the “Extreme Fear” zone on Monday.

U.S. stocks settled higher on Monday, with the S&P 500 gaining for the fourth straight session on rising hopes that the ongoing U.S.-Iran war could end soon.

President Donald Trump has set a deadline of Tuesday evening for Iran to reopen the Strait of Hormuz or face large‑scale strikes on power plants, bridges and other infrastructure.

Tehran has so far rejected U.S. ceasefire and reopening proposals, keeping markets on edge over whether the deadline brings de‑escalation or a major military escalation.

Soleno Therapeutics, Inc. (NASDAQ:SLNO) shares jumped over 32% on Monday after the company announced that it will be acquired by Neurocrine Biosciences for $53 per share in cash. Shares of Profusa Inc. (NASDAQ:PFSA) surged 144% after the company announced it will acquire the PanOmics multi-omics diagnostics platform from BioInsights LLC for approximately $30 million in stock.

On the economic data front, the ISM services PMI declined to 54 in March from 56.1 in the previous month, versus market estimates of 55.

Most sectors on the S&P 500 closed on a positive note, with consumer discretionary, energy and consumer staples stocks recording the biggest gains on Monday. However, health care and utilities stocks bucked the overall market trend, closing the session lower.

The Dow Jones closed higher by around 165 points to 46,669.88 on Monday. The S&P 500 rose 0.44% to 6,611.83, while the Nasdaq Composite surged 0.54% at 21,996.34 during Monday's session.

Investors are awaiting earnings results from Levi Strauss & Co. (NYSE:LEVI), Greenbrier Companies Inc. (NYSE:GBX) and Phoenix Education Partners Inc. (NYSE:PXED) today.

What Is CNN Business Fear & Greed Index?

At a current reading of 22.6, the index remained in the “Extreme Fear” zone on Monday, versus a prior reading of 23.7.

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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