Observed through the lens of the CNN Money Fear and Greed index, the market sentiment took a further dip, hovering stubbornly within the “Greed” zone by the close of Friday.
As the closing bell rang on Friday, U.S. stocks grappled with a somber reality – the S&P 500 marked its second consecutive weekly decline. Last week, the S&P 500 ebbed by 0.13%, while the venerable 30-stock Dow registered a marginal slip of 0.02%.
In the backdrop of this financial drama, the US Federal Reserve’s impending meeting looms large, with a widespread expectation that interest rates will remain unchanged.
Friday saw Adobe Inc. ADBE shares tumbling by roughly 13.7% following a bleak forecast. In contrast, shares of Cardlytics, Inc. CDLX soared by a staggering 77% after reporting robust fourth-quarter earnings.
Dipping into economic metrics, February witnessed a mere 0.1% uptick in U.S. industrial production compared to the prior month. Meanwhile, the NY Empire State Manufacturing Index painted a grim picture, plunging to -20.9 in March from -2.4 in February. Additionally, the University of Michigan consumer sentiment waned to 76.5 in March, a three-month low, slipping from 76.9 in February.
Among the sectors on the S&P 500, a canvas of losses unfolded, with information technology, consumer discretionary, and communication services stocks facing the fiercest headwinds on Friday. In stark contrast, energy and utilities stocks defied this prevailing wind, closing higher in the session.
Emblematic of this downward trajectory, the Dow Jones clocked a descent of over 190 points to settle at 38,714.77 on Friday. The S&P 500 also bore the weight of a 0.65% fall, resting at 5,117.09, while the Nasdaq Composite mirrored this decline, dipping by 0.96% to stand at 15,973.17 at the end of Friday’s session.
As the curtain rises on the new week, investors eagerly anticipate earnings announcements from JOYY Inc. YY, Comtech Telecommunications Corp. CMTL, and Science Applications International Corporation SAIC.
Reflecting on Friday’s market mood, the Fear & Greed Index clings to a reading of 70.4, nestled within the “Greed” zone, softly down from the prior 71.3.
Unveiling the Essence of the CNN Business Fear & Greed Index
Like a seismograph capturing tremors of emotion, the Fear & Greed Index offers a snapshot of the prevailing market sentiment. With higher fear applying downward pressure on stock prices and elevated greed exerting the opposing effect, this index employs seven equitably weighted indicators to weave a narrative. Ranging from 0 to 100, where 0 symbolizes peak fear and 100 epitomizes utmost greed, this index acts as a compass guiding investors through the tempest of emotion.
