The US stock market experienced a downturn on Thursday, with the S&P 500 and Nasdaq Composite recording their longest losing streaks since April. This decline is attributed to various factors, including a surge in fear levels as indicated by the Fear and Greed Index.
Key Market Indicators
- The S&P 500 fell by 0.22% to 5,868.55
- The Nasdaq Composite dipped 0.16% to 19,280.79
- The Dow Jones closed lower by around 152 points to 42,392.27
Sector Performance
Most sectors on the S&P 500 closed on a negative note, with:
- Consumer discretionary
- Materials
- Real estate stocks recording the biggest losses
However, energy and utilities stocks bucked the overall market trend, closing the session higher.
Economic Data
The US initial jobless claims fell by 9,000 to a reading of 211,000 in the final week of 2024, versus market estimates of 222,000. Additionally:
- The S&P Global manufacturing PMI declined to 49.4 in December
- US construction spending unexpectedly stalled month-over-month to an annual rate of $2,153 billion in November
Notable Stock Movements
- Tesla, Inc. shares fell over 6% following fourth-quarter production and delivery data
Fear and Greed Index
The Fear and Greed Index, a measure of current market sentiment, remained in the “Fear” zone on Thursday with a reading of 26.1. This index is calculated based on seven equal-weighted indicators and ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greediness.
Index Details
- The index is based on the premise that higher fear exerts pressure on stock prices, while higher greed has the opposite effect
- The current reading of 26.1 indicates an increase in overall fear levels, contributing to the market’s downward trend.