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Investor Optimism Improves Following Powell's Speech

Published 28/08/2023, 07:41
© Reuters.  Investor Optimism Improves Following Powell's Speech
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Benzinga - by Lisa Levin, Benzinga Editor.

The CNN Money Fear and Greed index showed some improvement in overall sentiment in U.S. investors on Friday.

U.S. stocks closed higher on Friday following Federal Reserve Chair Jerome Powell’s remarks at the Jackson Hole Symposium. Powell signified the Fed’s readiness to raise interest rates if deemed suitable.

However, the Dow fell for the second consecutive week, while the S&P 500 and Nasdaq Composite snapped a three-week losing streak.

The University of Michigan consumer sentiment was revised lower to 69.5 in August versus a preliminary reading of 71.2.

Affirm Holdings, Inc. (NASDAQ: AFRM) shares jumped around 29% on Friday after the company reported better-than-expected fourth-quarter financial results and issued guidance. Domo, Inc. (NASDAQ: DOMO) shares fell around 36% after the company issued a below-consensus third-quarter outlook and lowered FY24 guidance.

All the major sectors on the S&P 500 closed on a positive note, with energy and consumer discretionary stocks recording the biggest gains on Friday.

The Dow Jones closed higher by around 248 points to 34,346.90 on Friday. The S&P 500 rose 0.67% at 4,405.71, while the Nasdaq Composite added 0.94% at 13,590.65 during the session.

Investors are awaiting earnings results from HEICO Corporation (NYSE: HEI), JOANN Inc. (NASDAQ: JOAN) and Baozun Inc. (NASDAQ: BZUN) today.

At a current reading of 47.9, the index moved to the "Neutral" zone on Friday, compared to a previous reading of 46.4.

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.

Read Next: These 3 Financial Stocks With Over 6% Dividend Yields Are Recommended By Wall Street's Most Accurate Analysts

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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