Dow Tumbles Over 600 Points Following Jobs Data, Investor Sentiment Weakens Further: Greed Index Remains In 'Fear' Zone

The CNN Money Fear and Greed index showed a decline in the overall market sentiment, with the index remaining in the “Fear” zone on Friday.

U.S. stocks settled lower on Friday, with the Dow Jones index tumbling over 600 points during the session following weak jobs data.

Nonfarm payrolls came in at 114,000 last month, a slowdown of 65,000 from June, and well below the economist consensus estimate of 175,000 according to TradingEconomics. The unemployment rate rose from 4.1% to 4.3%, contrary to expectations of it remaining unchanged.

Amazon.com, Inc.. AMZN shares dipped 8.8% on Friday after the company posted mixed second-quarter financial results after Thursday’s closing bell. Apple, Inc. AAPL reported better-than-expected earnings and sales results for its third quarter on Thursday. Exxon Mobil Corporation XOM reported better-than-expected second-quarter FY24 results on Friday.

Most sectors on the S&P 500 closed on a negative note, with financials, energy, and consumer discretionary stocks recording the biggest losses on Thursday. However, consumer staples and utilities stocks bucked the overall market trend, closing the session higher.

The Dow Jones closed lower by around 611 points to 39,737.26 on Friday. The S&P 500 fell 1.84% at 5,346.56, while the Nasdaq Composite dipped 2.43% at 16,776.16 during Friday's session.

Investors are awaiting earnings results from Tyson Foods, Inc. TSN, Kosmos Energy Ltd. KOS, and Avis Budget Group, Inc. CAR today.

What is CNN Business Fear & Greed Index?

At a current reading of 27, the index remained in the “Fear” zone on Friday, versus a prior reading of 32.2.

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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