Chip Stocks Slide, Nasdaq Drops 200 Points; Fear & Greed Index Holds Neutral

CNN Money's Fear & Greed Index showed little change in overall market sentiment on Monday, remaining in the "neutral" zone.

U.S. stocks closed mixed on Friday, with the Nasdaq Composite falling about 200 points during trading as major technology stocks declined.

Micron Technology shares fell 5.8%, while Advanced Micro Devices dropped 3.5% on Monday.

All major indices posted losses last week, with the S&P 500 down 1.4% and the Nasdaq down 2% over the period. Both indices ended three-week winning streaks. The Dow Jones also recorded a weekly decline of 0.9%, marking its second consecutive weekly loss.

President Donald Trump posted on Truth Social, escalating the trade dispute with Ottawa, writing that "on January 1, 2027, tariffs on all cars, trucks, auto parts, and steel will be raised to 50%."

Applied Optoelectronics shares fell about 14% after the optical network supplier disclosed a $600 million at-the-market stock offering. XPeng shares dropped about 8.5% on Monday after the Chinese electric vehicle maker reported a wider-than-expected second-quarter loss and issued third-quarter revenue guidance below Wall Street estimates.

On the economic data front, the Chicago Fed National Activity Index slipped to -0.08 in July from 0.06 the previous month, indicating a slight deterioration in economic activity.

Most sectors of the S&P 500 closed higher on Monday, with consumer staples, utilities, and financials posting the largest gains. However, energy and information technology stocks were the worst performers.

The Dow Jones closed up about 140 points at 53,417.20 on Monday. The S&P 500 fell 0.28% to 7,652.86, and the Nasdaq Composite dropped 0.77% to 25,980.19 during Monday's trading.

Investors are awaiting earnings results from Dick's Sporting Goods, Intuit, and Zoom Communications today.

What is the CNN Business Fear & Greed Index?

The index currently reads 55, remaining in the "neutral" zone on Monday, up from a previous reading of 54.5.

The Fear & Greed Index is a measure of current market sentiment. It is based on the premise that higher fear puts downward pressure on stock prices, while higher greed has the opposite effect. The index is calculated based on seven equally weighted indicators. The index ranges from 0 to 100, where 0 represents maximum fear and 100 represents maximum greed.