The CNN Money Fear and Greed index showed a decline in the overall market sentiment, while the index remained in the “Greed” zone on Friday.
U.S. stocks settled lower on Friday, with the Nasdaq Composite falling more than 1% during the session. However, all major indices recorded gains for August.
The 30-stock Dow gained more than 3% in August, while the S&P 500 recorded around 2% surge. The tech-heavy Nasdaq also gained around 1.6% during the month.
On the economic front, the Personal Consumption Expenditures price index—the Fed’s broad measure of inflation—increased 2.6% from a year earlier in July, right in line with Wall Street expectations. U.S. personal income increased by 0.4% month-over-month to $25.905 trillion in July, while personal spending rose by 0.5% to $20.802 trillion.
Alibaba Group Holding BABA shares jumped around 13% on Friday following the release of its fiscal first-quarter results, as the e-commerce giant co-founded by Jack Ma reported revenue that exceeded analyst expectations. Marvell Technology Inc. MRVL shares dropped 19% after the company issued third-quarter sales guidance with a midpoint below estimates.
Most sectors on the S&P 500 closed on a positive note, with health care, real estate and consumer staples stocks recording the biggest gains on Friday. However, information technology and consumer discretionary stocks bucked the overall market trend, closing the session lower.
The Dow Jones closed lower by around 92 points to 45,544.88 on Friday. The S&P 500 fell 0.64% to 6,460.26, while the Nasdaq Composite dipped 1.15% at 21,455.55 during Friday’s session.
Investors are awaiting earnings results Nio Inc. NIO, Signet Jewelers Ltd SIG and Zscaler Inc ZS today.
What is CNN Business Fear & Greed Index?
At a current reading of 64, the index remained in the “Greed” zone on Friday, versus a prior reading of 65.7.
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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