Markets Remain Bullish Following Strong Bank Earnings

The CNN Money Fear and Greed index remained in the "Extreme Greed" zone on Friday.

The Dow Jones recorded gains for the fifth straight session on Friday following strong earnings from some of the major banks. On a weekly basis, the Dow recorded its best performance since March, gaining 2.3%, while the S&P 500 gained 2.4%.

JPMorgan Chase & Co. JPM reported better-than-expected second-quarter earnings, while Wells Fargo & Company WFC also posted upbeat quarterly results.

On the economic data front, the University of Michigan consumer sentiment for the U.S. rose for a second month to a reading of 72.6 in July, recording the highest level since Sept. 2021.

The Dow Jones closed higher by around 114 points to 34,509.03 on Friday. The S&P 500 fell 0.10% at 4,505.42, while the Nasdaq Composite lost 0.18% at 14,113.70 during the session.

Investors are awaiting earnings results from FB Financial Corporation FBK, Home Bancorp, Inc. HBCP and Guaranty Bancshares, Inc. GNTY today.

At a current reading of 80.0, the index remained in the "Extreme Greed" zone, versus a previous reading of 80.0

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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