Investor Sentiment Edges Lower, But Fear & Greed Index Remains In 'Extreme Greed' Zone

The CNN Money Fear and Greed index showed a slight decline in the overall market sentiment, while the index remained in the "Extreme Greed" zone on Friday.

U.S. stocks closed mixed on Friday, with the Dow Jones index settling at an all-time high during the session.

All three major indices recorded gains last week, with the S&P 500 gaining around 1.7% and the Dow adding 1.3% for the week. On Thursday, the S&P 500 notched its best session since Jan. 2023.

Shares of Carvana Co. CVNA jumped over 32% on Friday after the company reported fourth-quarter financial results. However, ModivCare Inc. MODV shares tumbled more than 39% after the company issued weak sales forecast for the first quarter.

On the economic data front, the total number of active U.S. oil rigs climbed by 6 rigs this week, Baker Hughes Inc reported.

Most sectors on the S&P 500 closed on a higher note, with utilities, materials and industrials stocks recording the biggest gains on Friday. However, energy and consumer discretionary stocks bucked the overall market trend, closing the session lower.

The Dow Jones closed higher by around 62 points to 39,131.53 on Friday. The S&P 500 rose 0.03% at 5,088.80, while the Nasdaq Composite fell 0.28% at 15,996.82 during Friday’s session.

Investors are awaiting earnings results from Workday, Inc. WDAY, Zoom Video Communications, Inc. ZM, Pilgrim's Pride Corporation PPC and Domino's Pizza, Inc. DPZ today.

At a current reading of 77.7, the index remained in the "Extreme Greed" zone on Friday, versus a prior reading of 78.9.

What is 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.

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