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

U.S. stocks settled higher on Monday, with the Nasdaq Composite gaining more than 1% during the session amid a rebound in chip stocks.

Major indices closed the holiday-shortened week with gains, as the S&P 500 rose 1.8% and the 30-stock Dow surged around 2% during the week.

Shares of Microsoft Corp. (NASDAQ:MSFT) fell around 1% on Monday after the company announced 4,800 job eliminations.

On the economic data front, the S&P Global composite PMI rose to 51.9 in June from 51.5 in the previous month, but down from the preliminary reading of 52.2. The ISM services PMI declined to 54.0 in June from 54.5 in May, in line with market estimates.

Most sectors on the S&P 500 closed on a negative note, with health care, real estate and utilities stocks recording the biggest losses on Monday. However, information technology and communication services stocks were among the top gainers.

The Dow Jones closed higher by around 156 points to 53,055.91 on Monday. The S&P 500 rose 0.72% to 7,537.43, while the Nasdaq Composite jumped 1.12% to 26,121.16 during Monday’s session.

Investors are awaiting earnings results from Penguin Solutions Inc. (NASDAQ:PENG), Saratoga Investment Corp. (NYSE:SAR) and Enerpac Tool Group Corp. (NYSE:EPAC) today.

What Is CNN Business Fear & Greed Index?

At a current reading of 45, the index moved to the “Neutral” zone on Monday, versus a prior reading of 38.

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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