The CNN Money Fear and Greed index showed an improvement in the overall market sentiment, while the index remained in the “Fear” zone on Friday.
U.S. stocks settled higher on Friday, with the Nasdaq Composite gaining 1% during the session following a sharp rise in Amazon.com Inc. (NASDAQ:AMZN) shares.
Amazon shares jumped over 15% on Friday after reporting better-than-expected results for the second quarter. However, Apple Inc. (NASDAQ:AAPL) stock fell over 7% following fiscal third-quarter results.
On the economic data front, U.S. employment costs increased by 0.9% in the second quarter, up from market estimates of a 0.8% rise. The University of Michigan’s consumer sentiment index rose to 55.2 in July versus a preliminary reading of 54.0.
Most sectors on the S&P 500 closed on a negative note, with materials, utilities and real estate stocks recording the biggest losses on Friday. However, communication services and consumer discretionary stocks were among the biggest gainers.
The Dow Jones closed higher by around 277 points to 52,485.03 on Friday. The S&P 500 climbed 0.70% to 7,489.72, while the Nasdaq Composite jumped 1% to 25,373.85 during Friday’s session.
The S&P 500 fell 0.1%, while the Nasdaq dipped 3.2% in July. However, the Dow gained 0.3% during the period, recording its fourth straight positive month.
Investors are awaiting earnings results from Tyson Foods Inc. (NYSE:TSN), Marriott International Inc. (NASDAQ:MAR) and Vertex Pharmaceuticals Inc. (NASDAQ:VRTX) today.
What is CNN Business Fear & Greed Index?
At a current reading of 42.5, the index remained in the “Fear” zone on Friday, versus a prior reading of 40.7.
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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