Fear & Greed Index Moves To 'Fear' Zone As Dow Dips Over 1,000 Points Following Powell's Speech

The CNN Money Fear and Greed index moved to the "fear" zone after the Dow Jones dipped more than 1,000 points on Friday following Powell’s comments.

Fed Chair Jerome Powell, at the Jackson Hole symposium, said the Federal Reserve’s goal remains getting inflation back down to a goal of 2%.

Markets are expecting a rate hike between 50 basis points and 75 basis points at the next month’s meeting.

Shares of Dell Technologies DELL dropped more than 13% on Friday after the company reported worse-than-expected Q2 sales results.

The Dow dipped 3.03% to close at 32,283.40 on Friday. The S&P 500 tumbled 3.37%, while the Nasdaq Composite declined 3.94% to settle at 12,141.71 in the previous session amid a sharp decline in technology stocks, including Apple Inc. AAPL, Amazon.com, Inc. AMZN and Meta Platforms, Inc. META.

For the week, the Nasdaq index declined 4.4%, while the Dow tumbled 4.2%,

Investors are now awaiting earnings results from Catalent, Inc. CTLT and
Pinduoduo Inc. PDD, scheduled for release today.

At a current reading of 44.0, the index moved to the "fear" zone, following a previous reading of 49.0.

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.