The CNN Money Fear and Greed index showed an improvement in the overall market sentiment, while the index remained in the “Neutral” zone on Friday.
U.S. stocks settled higher on Friday, following comments from Fed Chair Jerome Powell at the Jackson Hole Economic Symposium.
Powell signaled a forthcoming shift in interest rates, stating, "The time has come for policy to adjust." His remarks suggest the Fed is on the cusp of easing interest rates, yet Powell emphasized the importance of data-driven decisions, carefully avoiding any commitment to specific timing or the magnitude of those cuts.
Tech stocks moved higher with investors expecting a lower interest-rate environment to benefit the group. Shares of Tesla, Inc. (NASDAQ:TSLA) and NVIDIA Corporation (NASDAQ:NVDA) jumped over 4.5% each on Friday.
Workday, Inc. (NASDAQ:WDAY) shares jumped 12.5% on Friday as the company upbeat earnings for the second quarter. Ross Stores, Inc. (NASDAQ:ROST) posted stronger-than-expected earnings for its second quarter, after the closing bell on Thursday.
On the economic data front, the total number of active U.S. oil rigs came in unchanged at 483 rigs this week, Baker Hughes Inc. reported
All sectors on the S&P 500 closed on a positive note, with consumer discretionary, information technology, and real estate stocks recording the biggest gains on Friday.
The Dow Jones closed higher by around 462 points to 41,175.08 on Friday. The S&P 500 rose 1.15% to 5,634.61, while the Nasdaq Composite climbed 1.47% to close at 17,877.79 during Friday's session.
Investors are awaiting earnings results from HEICO Corporation (NYSE:HEI), Daqo New Energy Corp. (NYSE:DQ), and Trip.com Group Limited (NASDAQ:TCOM) today.
What is CNN Business Fear & Greed Index?
At a current reading of 52.9, the index remained in the “Neutral” zone on Friday, versus a prior reading of 48.4.
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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