The CNN Money Fear and Greed index showed a decline in the overall market sentiment, while the index remained in the “Greed” zone on Friday.
U.S. stocks settled lower on Friday, with the Dow Jones index falling more than 500 points during the session as higher oil prices and a bond-market rout reignited fears of interest-rate hikes.
No concrete agreements emerged from this week's summit between President Donald Trump and Chinese President Xi Jinping, leaving a U.S.–China diplomatic stalemate as an added drag on risk sentiment.
In earnings, RBC Bearings Inc. (NYSE:RBC) reported upbeat earnings for the first quarter on Friday. Globant SA (NYSE:GLOB) shares jumped 14% on Friday following upbeat quarterly sales.
On the economic data front, the NY Empire State Manufacturing Index rose to 19.6 in May from 11 in the previous month, also topping market estimates of 7.5. U.S. industrial production rose 0.7% in April, after falling 0.3% in March.
Most sectors on the S&P 500 closed on a negative note, with materials, utilities and consumer discretionary 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 537 points to 49,526.17 on Friday. The S&P 500 fell 1.24% to 7,408.50, while the Nasdaq Composite dipped 1.54% at 26,225.14 during Friday's session.
Investors are awaiting earnings results from Baidu Inc. (NASDAQ:BIDU), Brady Corp. (NYSE:BRC) and Ryanair Holdings PLC (NASDAQ:RYAAY) today.
What Is CNN Business Fear & Greed Index?
At a current reading of 62.9, the index remained in the “Greed” zone on Friday, versus a prior reading of 65.
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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