Benzinga - by Lisa Levin, Benzinga Editor.
The CNN Money Fear and Greed index showed a decline in overall sentiment among U.S. investors on Friday.
U.S. stocks closed lower on Friday, ahead of the Federal Reserve’s policy meeting this week. The Dow, meanwhile, settled slightly higher on Friday, while the S&P 500 and Nasdaq both recorded losses for the second straight week.
Adobe Inc. (NASDAQ: ADBE) shares fell 4.2% on Friday after the company reported third-quarter financial results and issued guidance. Lennar Corporation (NYSE: LEN) shares fell 2.5% after reporting third-quarter results.
On the economic data front, export prices in the U.S. rose by 1.3% month-over-month in August, while import prices increased by 0.5% month-over-month in August. The University of Michigan consumer sentiment declined to 67.7 in September from 69.5 in the prior month.
All the major sectors on the S&P 500 closed on a negative note, with information technology and consumer discretionary stocks recording the biggest losses on Friday.
The Dow Jones closed lower by around 289 points to 34,618.24 on Friday. The S&P 500 fell 1.22% at 4,450.32, while the Nasdaq Composite lost 1.56% at 13,708.33 during the session.
Investors are awaiting earnings results from Stitch Fix, Inc. (NASDAQ: SFIX) and Investcorp Credit Management BDC, Inc. (NASDAQ: ICMB) today.
At a current reading of 51.7, the index remained in the "Neutral" zone on Friday, compared to a previous reading of 54.8.
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.
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