The CNN Money Fear and Greed index showed an improvement in the overall market sentiment, while the index moved to the “Neutral” zone on Monday.

U.S. stocks settled higher on Monday, with the Nasdaq Composite surging around 1% during the session as investors set aside tariff threats by President Donald Trump. Shares of chipmakers gained on Monday, with Nvidia Corp. (NASDAQ:NVDA) adding 2.9% during the session. Broadcom Inc. (NASDAQ:AVGO) and Micron Technology Inc. (NASDAQ:MU) rose 4.5% and 3.9%, respectively, during the session.

Wall Street, meanwhile, recorded losses last week as renewed fears over inflation and trade tariffs eroded risk appetite.

Shares of ON Semiconductor Corp. (NASDAQ:ON) dipped over 8% on Monday after the company posted downbeat quarterly results. Shares of McDonald’s Corp. (NYSE:MCD) gained around 5% following the release of fourth-quarter results.

On the economic data front, U.S. consumer inflation expectations for the year ahead came in steady for a third straight month at 3% in January.

Most sectors on the S&P 500 closed on a positive note, with energy, information technology, and utilities stocks recording gains on Monday. However, financial and utilities stocks bucked the overall market trend, closing the session lower.

The Dow Jones closed higher by around 167 points to 44,470.41 on Monday. The S&P 500 rose 0.67% to 6,066.44, while the Nasdaq Composite gained 0.98% at 19,714.27 during Monday's session.

Investors are awaiting earnings results from The Coca-Cola Co. (NYSE:KO), Marriott International Inc. (NASDAQ:MAR), and Gilead Sciences Inc. (NASDAQ:GILD) today.

What is CNN Business Fear & Greed Index?

At a current reading of 46.2, the index moved to the “Neutral” zone on Monday, versus a prior reading of 38.8.

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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