US Stocks Close Higher, Dow Hits 40,000: Market Sentiment Remains In Greed Zone

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

U.S. stocks closed higher on Friday, with the Dow Jones index topping the key 40,000 mark during the session. The 30-stock blue-chip index gained around 1.6% last week.

On the economic data front, the headline PPI for final demand rose by 0.2% month-over-month in June, rebounding sharply from the upwardly revised flat reading in May and surpassing economists’ expectations – as tracked by TradingEconomics – of a 0.1% increase. The University of Michigan consumer sentiment declined for a fourth consecutive month to 66 in July compared to 68.2 in the prior month.

Shares of JPMorgan Chase & Co. JPM fell around 1.2% even as the bank reported better-than-expected second-quarter revenue. Citigroup Inc. C shares also declined around 1.8% despite posting stronger-than-expected results for the second quarter.

Most sectors on the S&P 500 closed on a positive note, with information technology, consumer discretionary and materials stocks recording the biggest gains on Friday. However, communication services stocks bucked the overall market trend, closing the session lower.

The Dow Jones closed higher by around 247 points to 40,000.90 on Friday. The S&P 500 rose 0.55% at 5,615.35, while the Nasdaq Composite climbed 0.63% at 18,398.45 during Friday's session.

Investors are awaiting earnings results from The Goldman Sachs Group, Inc. GS, BlackRock, Inc. BLK and FB Financial Corporation FBK today.

What is CNN Business Fear & Greed Index?

At a current reading of 56.5, the index remained in the “Greed” zone on Friday, versus a prior reading of 55.5.

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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