Dow Tumbles Over 400 Points, Records Weekly Loss: Investor Sentiment Declines, Greed Index In ‘Fear’ Zone
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The CNN Money Fear and Greed index showed another decline in the overall market sentiment, while the index remained in the “Fear” zone on Friday.
U.S. stocks settled lower on Friday, with the Dow Jones index dipping more than 400 points during the session.
Major stock benchmarks also recorded weekly losses, with the S&P 500 falling 1.6% and the Nasdaq dipping 2.9%. The Dow also declined 0.9% last week.
Within Magnificent Seven stocks, Meta Platforms Inc. (NASDAQ:META) fell 2.8%, while Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) lost 2.2%.
On the earnings front, The Travelers Companies Inc. (NYSE:TRV) reported better-than-expected second-quarter financial results. Netflix Inc. (NASDAQ:NFLX) shares dipped more than 7% on Friday after the company reported mixed second-quarter financial results and issued weak guidance for the third quarter.
On the economic data front, U.S. industrial production increased 0.1% month-over-month in June, in line with May’s pace, but down from market estimates of 0.2% growth. U.S. import prices rose by 0.3% month-over-month in June, versus the revised 1.7% gain in May. U.S. export prices declined 0.6% month-over-month in June, following a revised 1.2% gain in May.
Most sectors on the S&P 500 closed on a negative note, with consumer discretionary, communication services and information technology stocks recording the biggest losses on Friday. However, energy stocks bucked the overall market trend, closing the session higher.
The Dow Jones closed lower by around 407 points to 52,146.42 on Friday. The S&P 500 dipped 1.01% to 7,457.69, while the Nasdaq Composite declined 1.40% to 25,520.24 during Friday’s session.
Investors are awaiting earnings results from Domino’s Pizza Inc. (NASDAQ:DPZ), Steel Dynamics Inc. (NASDAQ:STLD) and Crown Holdings Inc. (NYSE:CCK) today.
What Is CNN Business Fear & Greed Index?
At a current reading of 37.1, the index remained in the “Fear” zone on Friday, versus a prior reading of 41.2.
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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