Investor Sentiment Declines After July's Producer Price Index

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

The Nasdaq Composite closed lower on Friday, recording its second straight losing week this year. However, the Dow Jones gained by more than 100 points during the session.

Producer prices in the U.S. increased 0.3% month-over-month in July, recording the biggest rise since January, following a revised flat reading for June. Data released Thursday showed annual inflation rate in the U.S. rose to 3.2% in July from 3% in June, but down from market estimates of 3.3%.

Majority of sectors on the S&P 500 closed on a positive note, with energy and health care stocks recording the biggest gains on Friday. However, information technology and communication services stocks closed lower during the Friday’s session.

The Dow Jones closed higher by around 105 points to 35,281.40 on Friday. The S&P 500 fell 0.11% at 4,464.05, while the Nasdaq Composite lost 0.68% at 13,644.85 during the session.

Investors are awaiting earnings results from monday.com Ltd. MNDY, Suncor Energy Inc. SU and XP Inc. XP today.

At a current reading of 66.0, the index remained in the "Greed" zone, versus a previous reading of 67.0

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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