Dow Rises Sharply Following Jobs Data But Investor Sentiment Drops

The CNN Money Fear and Greed index showed a decline in overall sentiment among U.S. investors on Friday.

The Dow recorded its best day since January following strong jobs data and passage of a bill to raise the debt ceiling. The U.S. economy added 339,000 jobs in May, significantly higher than market estimates of 190,000. The unemployment rate, however, increased to 3.7% in May.

Lululemon Athletica Inc. LULU shares jumped over 11% on Friday after the company reported better-than-expected first-quarter results.

The Dow Jones closed higher by around 701 points to 33,762.76 on Friday. The S&P 500 rose 1.45% at 4,282.37, while the Nasdaq Composite jumped 1.07% to settle at 13,240.77 during the session. The S&P 500 rose around 1.8%, while the Nasdaq ended the trading week about 2% higher.

Investors are awaiting earnings results from Science Applications International Corporation SAIC, HealthEquity, Inc. HQY and JOANN Inc. JOAN today.

At a current reading of 65.0, the index remained in the "Greed" zone, versus a previous reading of 68.0

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.

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