Dow Tumbles More Than 700 Points: Investor Sentiment Declines, Fear & Greed Index In 'Extreme Fear' Zone

Market Sentiment - The CNN Money Fear and Greed index increased to a reading of 21.2, indicating a shift to the "Extreme Fear" zone from a previous reading of 25.1 [4][5] - This index reflects current market sentiment, suggesting that heightened fear is putting downward pressure on stock prices [5] Stock Market Performance - U.S. stocks closed lower, with the Dow Jones index dropping approximately 739 points to 46,677.85, while the S&P 500 fell by 1.52% to 6,672.62, and the Nasdaq Composite decreased by 1.78% to 22,311.98 [3] - Most sectors on the S&P 500 ended negatively, particularly industrials, consumer discretionary, and health care, while energy and utilities sectors showed gains [3] Economic Indicators - U.S. initial jobless claims decreased by 1,000 to 213,000, which was better than market expectations of 215,000 [2] - The U.S. trade deficit narrowed to $54.5 billion in January, down from a revised $72.9 billion in December [2] Geopolitical Factors - Iran's Supreme Leader Mojtaba Khamenei stated that the Strait of Hormuz remains closed, a critical chokepoint for approximately 20% of global oil supply, raising concerns about stagflation due to rising crude oil prices [2]