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Why The Fear Level Among US Investors Is Growing

Published 16/10/2023, 06:35
© Reuters.  Why The Fear Level Among US Investors Is Growing
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Benzinga - by Lisa Levin, Benzinga Editor.

The CNN Money Fear and Greed index showed growth in the fear level, but the index remained in the "Fear" zone on Friday.

U.S. stocks settled mostly lower on Friday, following an increase in crude oil prices and higher inflation expectations. However, the Dow and S&P 500 recorded weekly gains, closing higher by around 0.8% and 0.45% respectively. U.S. WTI crude futures closed higher by more than 5% on Friday.

On the earnings front, JPMorgan Chase & Co. (NYSE: JPM) reported strong earnings results for the third quarter, while Citigroup Inc (NYSE: C) reported third-quarter FY23 net revenue growth of 9% year-over-year to $20.14 billion, beating the consensus of $19.32 billion.

Most sectors on the S&P 500 closed on a negative note, with information technology, consumer discretionary and communication services stocks recording the biggest losses on Friday. However, energy and utilities stocks bucked the overall market trend, closing the session higher.

The Dow Jones closed higher by around 39 points to 33,670.29 on Friday. The S&P 500 fell 0.50% at 4,327.78, while the Nasdaq Composite fell 1.23% at 13,407.23 during Friday’s session.

Investors are awaiting earnings results from The Charles Schwab Corporation (NYSE: SCHW) and FB Financial Corporation (NYSE: FBK) today.

At a current reading of 29, the index remained in the "Fear" zone on Friday, compared to a previous reading of 34.9.

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

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