Investor Optimism Continues To Wane Despite Nasdaq's Fifth Consecutive Record Close On Friday

The CNN Money Fear and Greed index showed a further decline in the overall market sentiment, while the index remained in the “Fear” zone on Friday.

U.S. stocks settled mixed on Friday, with the Nasdaq Composite recording a fifth straight record close.

On the economic data front, the University of Michigan consumer sentiment declined for a third consecutive month to a reading of 65.6 in June, notching the lowest level since November, compared to 69.1 in May and down from market estimates of 72. Import prices in the U.S. declined by 0.4% month-over-month in May, while U.S. export prices declined by 0.6% month-over-month in May.

Shares of RH RH fell over 17% on Friday after the company reported mixed first-quarter financial results. Adobe Inc. ADBE shares jumped 14.5% after the company posted better-than-expected second-quarter earnings and issued strong guidance.

Most sectors on the S&P 500 closed on a negative note, with industrials, materials, and energy stocks recording the biggest losses on Friday. However, information technology (IT) and communication services stocks bucked the overall market trend, closing the session higher.

The Dow Jones closed lower by around 58 points to 38,589.16 on Friday. The S&P 500 fell 0.04% at 5,431.60, while the Nasdaq Composite climbed 0.12% at 17,688.88 during Friday's session.

Investors are awaiting earnings results from Quantum Corporation QMCO, Lennar Corporation LEN, and La-Z-Boy Incorporated LZB today.

What is CNN Business Fear & Greed Index?

At a current reading of 38.4, the index remained in the “Fear” zone on Friday, versus a prior reading of 40.9.

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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