Nasdaq Tumbles 350 Points Amid Decline In Software Stocks: Investor Sentiment Declines, Greed Index In 'Fear' Zone

Market Sentiment - The CNN Money Fear and Greed index showed a decline in overall market sentiment, remaining in the "Fear" zone with a current reading of 40.7, down from 44.5 [1][4] - U.S. stocks exhibited mixed performance, with the Nasdaq Composite falling approximately 350 points as investors shifted from long-duration growth stocks to energy and materials sectors [1] Economic Data - The ISM Services PMI remained unchanged at 53.8 in January, matching the revised December figure and exceeding market estimates of 53.5 [2] - The S&P Global composite PMI increased to 53.0 in January from a preliminary level of 52.8 and up from December's reading of 52.7 [2] Sector Performance - Most sectors on the S&P 500 closed positively, with energy, materials, and real estate stocks showing the largest gains, while information technology and communication services sectors declined [3] - The Dow Jones increased by around 260 points to 49,501.30, while the S&P 500 fell by 0.51% to 6,882.72, and the Nasdaq Composite decreased by 1.51% to 22,904.58 during the session [3]