Dow Falls Over 700 Points, Treasury Yields Rise Again, Fear & Greed Index Turns Neutral

CNN Money's Fear & Greed Index showed overall market sentiment declining, with the index shifting into the "neutral" zone on Thursday.

U.S. stocks closed lower on Thursday, with the Dow Jones Industrial Average falling more than 700 points intraday following a drop in Walmart Inc. shares. The retail giant's stock fell more than 9% after reporting its slowest domestic sales growth in six years.

Despite the U.S. Treasury Department stating it would at least double the size of buybacks for 10-year, 20-year, and 30-year bonds over the coming months, Treasury yields continued to rise on Thursday. Treasury Secretary Scott Bessent said the buyback operations could be larger than the announced $4 billion.

On the economic data front, U.S. initial jobless claims fell by 6,000 to 206,000 in the second week of August, below the market expectation of 210,000. The Philadelphia Fed manufacturing index rose to 47.4 in August, up from 41.4 in July, marking its highest level since April 2021 and exceeding the market forecast of 25.

Most sectors of the S&P 500 closed lower on Thursday, with healthcare, consumer discretionary, and consumer staples stocks recording the largest declines. However, energy and real estate stocks bucked the trend and closed higher.

The Dow Jones Industrial Average closed down approximately 704 points at 52,759.21 on Thursday. The S&P 500 fell 0.87% to 7,641.16, and the Nasdaq Composite declined 1% to 26,067.17 on Thursday.

Investors are awaiting earnings results from BJ's Wholesale Club Holdings Inc. and KE Holdings Inc. today.

What is the CNN Business Fear & Greed Index?

The current reading is 52.5, with the index shifting into the "neutral" zone on Thursday, compared to a previous reading of 57.

The Fear & Greed Index is a measure of current market sentiment. It is based on the premise that higher fear exerts downward pressure on stock prices, while higher greed produces 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.