Dow Surges To Fresh Highs As Major Indices Record Gains For 3rd Straight Week: Fear Index Remains In 'Greed' Zone

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

U.S. stocks settled mixed on Friday, with the Dow Jones index surging to a fresh record high level during the session.

Major indices recorded gains for the third straight week, with the Dow and S&P 500 gaining around 0.6% last week. The Nasdaq, meanwhile, surged around 1% during the week.

On the economic data front, the US core PCE price index increased by 0.1% from the prior month in August compared to market estimates of a 0.2% increase versus the 0.2% gain in the previous month. U.S. wholesale inventories increased 0.2% month-over-month to $905.7 billion in August compared to a revised 0.2% rise in the prior month.

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

The Dow Jones closed higher by around 138 points to 42,313.00 on Friday. The S&P 500 fell 0.13% to 5,738.17, while the Nasdaq Composite fell 0.39% at 18,119.59 during Friday's session.

Investors are awaiting earnings results from Carnival Corporation CCL and The Glimpse Group, Inc. VRAR today.

What is CNN Business Fear & Greed Index?

At a current reading of 67.8, the index remained in the “Greed” zone on Friday, versus a prior reading of 68.8.

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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