Investor nerves seem rattled, with the CNN Money Fear and Greed index indicating a dip in overall market sentiment, though still lingering comfortably in the “Greed” domain towards the week’s close.
Last Friday saw the Dow Jones index ending on a slightly somber note, even as it clinched its most robust performance this year. All three major indices reveled in gains, with the S&P 500 savoring a 2.3% uptick, and the Dow reveling in an approximate 2% rise – its most impressive weekly display since December.
Amidst the market ebb and flow, Lululemon Athletica Inc. LULU witnessed a 16% slump during Friday’s trading session following the unveiling of its fourth-quarter results. Meanwhile, Nike Inc NKE staggered down by around 7% after reporting its third-quarter results. Contrasting this downtrend, FedEx Corporation FDX soared over 7% on Friday post-announcement of its third-quarter earnings, along with the initiation of a fresh $5 billion share repurchase program the day before.
In updates from the economic arena, reports from Baker Hughes Inc. disclosed a decrease of 1 active U.S. oil rig this week.
Within the sectors landscape, Friday witnessed a predominantly crimson sea, with real estate, financial services, and consumer discretionary stocks bearing the brunt of the downside. In stark contrast, the information technology and communication services sectors dared to swim against the downward current, closing the session on a positive note.
The final bell on Friday saw the Dow Jones descending by around 305 points to settle at 39,475.90. The S&P 500 retracted by 0.14% to 5,234.18, while the Nasdaq Composite managed a 0.16% ascent, gliding to 16,428.82 by the session’s close.
Investor anticipation is palpable as the earnings revelation moment approaches for Westport Fuel Systems Inc. WPRT, BuzzFeed, Inc. BZFD, and Dada Nexus Limited DADA later today.
The Fear and Greed Index stands at 71.8, marking continued residence in the “Greed” territory, albeit slightly tempered from the prior reading of 74.3.
Decoding the CNN Business Fear & Greed Index:
The Fear and Greed Index serves as a barometer for current market sentiment. It operates on the principle that heightened fear exerts a downward force on stock prices, whereas increased greed has an upward influence. The index derives its value from seven equally weighted indicators, spanning a scale of 0 to 100 – where 0 signifies peak fear, and 100 epitomizes the zenith of greed.
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