S&P 500 Records Gain For May: Investor Sentiment Declines, But Fear Index Remains In 'Greed' Zone

The CNN Money Fear and Greed index showed some decline in the overall market sentiment, while the index remained in the “Greed” zone on Friday.

U.S. stocks settled mixed on Friday, with the Dow Jones index gaining more than 50 points during the session after President Donald Trump accused China of “totally” breaching a tariff agreement, raising new fears over trade disputes.

Wall Street closed on a positive note last month, with the S&P 500 gaining more than 6.2% in May and the Nasdaq jumping 9.6%. Both indices recorded their strongest months since November 2023. The Dow surged 3.9% for the month.

For the week, the S&P 500 climbed, while the 30-stock Dow climbed 1.6%. The tech-laden Nasdaq, meanwhile, surged 2% last week.

Shares of Dell Technologies Inc. DELL fell more than 2% on Friday after the company reported mixed financial results for the first quarter. Shares of Ulta Beauty Inc. ULTA jumped around 12% after the company reported better-than-expected first-quarter financial results and raised guidance.

On the economic data front, the University of Michigan consumer sentiment was revised higher to 52.2 in May versus a preliminary reading of 50.8. The Chicago PMI declined to 40.5 in May versus 44.6 in the previous month.

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

The Dow Jones closed higher by around 54 points to 42,270.07 on Friday. The S&P 500 slipped 0.01% to 5,911.69, while the Nasdaq Composite declined 0.32% to 19,113.77 during Friday's session.

Investors are awaiting earnings results from The Campbell’s Co. CPB, Science Applications International Corp. SAIC and Credo Technology Group Holding Ltd. CRDO today.

What is CNN Business Fear & Greed Index?

At a current reading of 61.5, the index remained in the “Greed” zone on Friday, versus a prior reading of 62.4.

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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