Investor Optimism Declines Following Inflation Report

The CNN Money Fear and Greed index showed some decline in the overall sentiment among US investors.

US stocks dropped sharply on Friday, recording their worst week of the year, after core personal consumption expenditures price index, the Fed’s preferred inflation gauge, increased 4.7% in January compared to the previous year, above economist estimates of 4.3%.

Boeing Co BA shares dropped 4.8% on Friday following reports suggesting the company will temporarily stop deliveries of its 787 Dreamliners to perform additional testing on a fuselage component.

The Dow closed lower by around 337 points to 32,816.92 on Friday. The S&P 500 fell 1.05% to 3,970.04, while the Nasdaq Composite dipped 1.69% to settle at 11,394.94 during the session.

Investors are awaiting earnings results from The AES Corporation AES, HEICO Corporation HEI, Workday Inc WDAY and Occidental Petroleum Corporation OXY today.

At a current reading of 59.0, the index remained in the "Greed" zone, compared to a previous reading of 63.0.

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.

Read Next: Insiders Buying Superior Drilling Products And 2 Other Penny Stocks