The CNN Money Fear and Greed index showed some improvement in the overall market sentiment, while the index remained in the “Greed” zone on Friday.
U.S. stocks settled higher on Friday, with the Nasdaq Composite gaining more than 400 points during the session following upbeat April’s jobs report.
All three major indices recorded weekly gains, with the Nasdaq jumping 4.5% and the S&P 500 adding 2.3%. The Dow also recorded a weekly gain of 0.2%.
Micron Technologies Inc. (NASDAQ:MU) continued to steal the spotlight. The memory-linked chipmaker rallied 15.5% on the session, with the stock recording the best week since December 2008. Peer SanDisk Corp. (NASDAQ:SNDK) soared in sympathy, up around 17%.
In earnings, Fluor Corp (NYSE:FLR) shares dipped around 15% on Friday after the company reported worse-than-expected first-quarter financial results. Shares of DXC Technology Co (NYSE:DXC) dipped 21% after the company reported mixed fourth-quarter financial results and issued FY27 adjusted EPS guidance below estimates.
On the economic data front, the U.S. economy added 115,000 jobs in April, nearly double the 62,000 consensus, with the unemployment rate steady at 4.3% and wage growth a touch below expectations at 0.2% month-over-month. The University of Michigan’s preliminary May Consumer Sentiment Index, by contrast, slumped to a record low of 48.2, with one-year inflation expectations easing slightly from 4.7% to 4.5%.
Most sectors on the S&P 500 closed on a positive note, with materials, consumer discretionary and information technology stocks recording the biggest gains on Friday. However, utilities and health care stocks bucked the overall market trend, closing the session lower.
The Dow Jones closed higher by around 12 points to 49,609.16 on Friday. The S&P 500 surged 0.84% to 7,398.93, while the Nasdaq Composite jumped 1.71% at 26,247.08 during Friday’s session.
Investors are awaiting earnings results from Mosaic Co (NYSE:MOS), Constellation Energy Corp (NASDAQ:CEG) and Fox Corp (NASDAQ:FOX) today.
At a current reading of 66.9, the index remained in the “Greed” zone on Friday, versus a prior reading of 66.4.
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.
Photo via Shutterstock
Recent Comments