Dow Dips Over 150 Points, But Records Weekly Gain: Investor Sentiment Improves, Greed Index In 'Fear' Zone

The CNN Money Fear and Greed index showed some improvement in the overall market sentiment, with the index in the “Fear” zone on Friday.

U.S. stocks settled mixed on Friday, with the Dow Jones index falling more than 150 points during the session.

However, stocks recorded gains last week, with the S&P 500 gaining around 1.5% and the Dow rising 0.6%. The Nasdaq gained 2.6% during the week.

Traders digested weaker-than-expected retail sales and the potential for peace talks between Russia and Ukraine. Retail sales in the U.S. fell 0.9% month-over-month in January, significantly worse than the anticipated 0.1% drop.

SoundHound AI Inc. SOUN shares dipped 28% on Friday after Nvidia Corp. NVDA disclosed in a 13F filing that it dissolved its stake in the company. Shares of Serve Robotics Inc. SERV tumbled 40% after an amended 13G filing shows Nvidia holds no stake in the company.

Most sectors on the S&P 500 closed on a negative note, with healthcare, consumer staples, and utilities stocks recording losses on Friday. However, information technology and communication services stocks bucked the overall market trend, closing the session higher.

The Dow Jones closed lower by around 165 points to 44,546.08 on Friday. The S&P 500 fell 0.01% to 6,114.63, while the Nasdaq Composite jumped 0.41% to 20,026.77 during Friday's session.

Investors are awaiting earnings results from Medtronic plc MDT, Occidental Petroleum Corp. OXY, and Fluor Corp. FLR today.

What is CNN Business Fear & Greed Index?

At a current reading of 44.5, the index was in the “Fear” zone on Friday, versus a prior reading of 43.3.

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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