Markets In Extreme Fear After Big Banks Disappoint On Earnings

The CNN Money Fear and Greed index showed that the US equity markets remained in the "extreme fear" zone on Friday, following the release of inflation data on Thursday.

What Happened: Producer prices for final demand increased 1.1% month-over-month in June, the most in three months and also above analysts’ expectations of 0.8%. Data released Wednesday also showed the annual inflation rate increasing to 9.1% in June, the highest level since November 1981.

Investors are now awaiting the release of several economic reports today, which are expected to impact the Fed’s rate decision this month.

US markets closed mixed on Thursday, with the Nasdaq 100 gaining 0.3%. The Dow Jones closed lower by 0.46% after JPMorgan Chase & Co. JPM and Morgan Stanley MS released weak earnings results for the latest quarter.

Markets are now awaiting earnings reports from big banks, with Citigroup Inc. C and Wells Fargo & Company WFC due to release earnings today.

At a current reading of 24.0, the index remained unchanged from Thursday’s reading, but down from the Fear Levels of 26.0 recorded on Wednesday.