The CNN Money Fear and Greed index showed a decline in the overall market sentiment, while the index moved to the “Fear” zone on Friday.
U.S. stocks settled lower on Friday, with the Nasdaq Composite falling more than 4% during the session to record its worst day since April 2025.
The S&P 500 dipped more than 2% last week, while the Nasdaq Composite fell 4.7%.
The iShares Semiconductor ETF dipped 10% to record its worst session since March 2020. Shares of Broadcom Inc. (NASDAQ:AVGO) fell around 8% after dropping over 12% on Thursday.
The economy added a robust 172,000 nonfarm payrolls in May, crushing expectations for 85,000. Payroll gains for March and April were also revised higher by a combined 93,000 jobs. The unemployment rate held steady at 4.3%.
Most sectors on the S&P 500 closed on a negative note, with information technology, consumer discretionary and materials stocks recording the biggest losses on Friday. However, consumer staples and utilities stocks bucked the overall market trend, closing the session higher.
The Dow Jones closed lower by around 695 points to 50,866.78 on Friday. The S&P 500 dipped 2.64% to 7,383.74, while the Nasdaq Composite tumbled 4.18% at 25,709.43 during Friday's session.
Investors are awaiting earnings results from Motorcar Parts of America Inc. (NASDAQ:MPAA), Campbell’s Co. (NASDAQ:CPB) and Vail Resorts Inc. (NYSE:MTN) today.
What Is CNN Business Fear & Greed Index?
At a current reading of 42.1, the index moved to the “Fear” zone on Friday, versus a prior reading of 53.9.
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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