Benzinga - by Avi Kapoor, Benzinga Staff Writer.
The CNN Money Fear and Greed index showed improvement in the overall market sentiment, while the index was in the “Neutral” zone on Friday.
U.S. stocks settled mostly higher on Friday, with the Dow Jones index recording its best session of the year.
U.S. stocks, however, recorded losses last week, with the S&P 500 falling 0.51% and the Dow Jones index declining 0.98% during the week. Despite recording losses last week, major indices notched gains in May. The Dow gained 2.3% last month, while the S&P 500 added 4.8% in May.
On the economic data front, the Federal Reserve’s preferred inflation measure held steady in April, aligning with economist expectations, yet keeping investors anxious about potential rate cuts. The headline PCE inflation rate held steady at 2.7% year-on-year in April 2024, matching economist expectations, according to Econoday data.
Shares of MongoDB, Inc. (NASDAQ:MDB) fell around 24% on Friday after the company issued weak FY25 guidance. Dell Technologies Inc. (NYSE:DELL) shares dipped around 18% despite reporting upbeat earnings and sales results for the first quarter. The Gap, Inc. (NYSE:GPS) shares jumped over 28% after reporting strong quarterly results
All sectors on the S&P 500 closed on a positive note, with real estate, utilities and energy stocks recording the biggest gains on Friday.
The Dow Jones closed higher by around 575 points to 38,686.32 on Friday. The S&P 500 rose 0.80% at 5,277.51, while the Nasdaq Composite slipped 0.01% at 16,735.02 during Friday's session.
Investors are awaiting earnings results from Science Applications International Corporation (NYSE:SAIC), Lavoro Limited (NASDAQ:LVRO) and HealthEquity, Inc. (NASDAQ:HQY) today.
At a current reading of 48.4, the index was in the “Neutral” zone on Friday, versus a prior reading of 43.5.
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: Jim Cramer: Beyond Meat Is ‘Way Too Risky,’ Warby Parker Is ‘Alright To Buy‘
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.