The CNN Money Fear and Greed index showed a decline in the overall market sentiment, with the index moving to the "Fear" zone on Monday.

U.S. stocks closed lower on Friday amid concerns over the conflict in the Middle East, with the S&P 500 falling more than 1% during the session.

On the economic data front, U.S. retail sales increased 0.7% month-over-month in March following a revised 0.9% rise in February. The NY Empire State Manufacturing Index climbed to -14.3 in April versus the prior month's reading of -20.9.

Snap One Holdings Corp. (NASDAQ:SNPO) shares jumped over 29% on Monday after the company announced that it will be acquired by Resideo Technologies. Goldman Sachs Group Inc. (NYSE:GS) reported better-than-expected first-quarter earnings.

All sectors on the S&P 500 closed on a negative note, with information technology, real estate and communication services stocks recording the biggest losses on Monday.

The Dow Jones closed lower by around 248 points to 37,735.11 on Monday. The S&P 500 fell 1.20% at 5,061.82, while the Nasdaq Composite dipped 1.79% at 15,885.02 during Monday's session.

Investors are awaiting earnings results from Johnson & Johnson (NYSE:JNJ), Morgan Stanley (NYSE:MS) and Morgan Stanley (NYSE:BAC) today.

At a current reading of 41, the index moved to the "Fear" zone on Monday, versus a prior reading of 46.2.

What is the CNN Business Fear & Greed Index?

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.