The CNN Money Fear and Greed index showed an improvement in the overall market sentiment, with the index moving to the “Neutral” zone on Friday.
U.S. stocks closed higher on Friday, with the Dow Jones index jumping around 650 points during the session following the release of recent inflation data.
The headline Personal Consumption Expenditure (PCE) price index fell to 2.5% year-on-year in June, as expected. The core component remained steady at 2.6%, countering expectations of a drop to 2.5%. The headline index’s decline to 2.5% marks the lowest point since February 2021, a level also seen in January and February 2024.
The S&P 500 fell 0.8% last week, while the Nasdaq dipped 2.1%, with both the indices recording posted back-to-back weekly losses. However, the Dow outperformed, with the index gaining 0.8% to record its fourth straight positive week.
Shares of Bristol Myers Squibb & Co BMY surged over 11% on Friday after the company posted strong second-quarter earnings and increased 2024 guidance. 3M Company MMM shares jumped around 23% on Friday after the company posted better-than-expected second-quarter financial results and raised its FY24 EPS outlook.
All sectors on the S&P 500 closed on a positive note, with industrials, materials, and real estate stocks recording the biggest gains on Friday
The Dow Jones closed higher by around 654 points to 40,589.34 on Friday. The S&P 500 surged 1.11% to close at 5,459.10, while the Nasdaq Composite climbed 1.03% at 17,357.88 during Friday's session.
Investors are awaiting earnings results from McDonald’s Corporation MCD, ON Semiconductor Corporation ON, and Sprouts Farmers Market, Inc. SFM today.
What is CNN Business Fear & Greed Index?
At a current reading of 45.3, the index moved to the “Neutral” zone on Friday, versus a prior reading of 42.2.
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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