Benzinga - The CNN Money Fear and Greed index moved to the "Extreme Fear" zone following a sharp drop in the US stocks.
Stocks on the Wall Street tumbled on Friday amid concerns over the U.S. regional banking industry.
On Thursday, SVB Financial Group (NASDAQ: SIVB) announced plans to raise $2 billion in capital, sending the stock down 60% on the day. The company’s stock was halted on Friday and the company’s Silicon Valley Bank was shut down by regulators.
The Dow closed lower by around 345 points to 31,909.64 on Friday. The S&P 500 fell 1.45% to 3,861.59, while the Nasdaq Composite dipped 1.76% to settle at 11,138.89 during the session.
Investors are awaiting earnings results from Bluegreen Vacations Holding Corporation (NYSE: BVH), Eagle Pharmaceuticals, Inc. (NASDAQ: EGRX) and Turtle Beach Corporation (NASDAQ: HEAR) today.
At a current reading of 24.0, the index moved to the "Extreme Fear" zone, compared to a previous reading of 35.0.
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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