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Fear & Greed Index Reflects Investor Sentiment Dip Amid Dow’s Weekly Loss

Fear & Greed Index Reflects Investor Sentiment Dip Amid Dow’s Weekly Loss

Investor Sentiment, as measured by the CNN Money Fear and Greed index, took a hit last week as the market mood shifted, remaining entrenched in the “Greed” zone even as stocks closed on a sour note on Friday.

The closing bell on Friday saw U.S. equities on a downtrend following the release of February’s job data. Closing the week on a down note, the S&P 500 took a 0.26% dip and the venerable Dow Jones Industrial Average suffered a 0.93% decline.

Nonfarm payroll numbers for February beat expectations, with 275,000 jobs added, outshining the anticipated 200,000. However, the unexpected rise in the unemployment rate from 3.7% to 3.9% was not met favorably by investors. Average hourly wage growth slowed to 0.1% in February, falling short of the projected 0.3% increase.

Shares of AerSale Corporation ASLE nosedived approximately 26% post the announcement of disappointing fourth-quarter financial results. Conversely, Willdan Group, Inc. WLDN soared over 24% buoyed by robust fourth-quarter financials, an optimistic FY24 outlook, and the snagging of a lucrative multi-million dollar contract.

In a pervasive downturn, most sectors on the S&P 500 ended the week in the red, with technology, consumer staples, and materials shares registering notable declines. Yet, energy and real estate sectors defied the trend, wrapping up the session on a positive note.

Friday’s curtain call on Wall Street saw the Dow Jones shedding around 69 points to settle at 38,722.69. The S&P 500 retreated 0.65% to close at 5,123.69, while the Nasdaq Composite slumped by 1.16% to 16,085.11.

Eagerly anticipated earnings results from Calavo Growers, Inc. CVGW, Casey’s General Stores, Inc. CASY, and Oracle Corporation ORCL hang in the balance today.

Notoriously fickle, the Fear & Greed index posted a reading of 71.4 on Friday, firmly in the “Greed” sphere, closing slightly lower from the prior day’s reading of 74.

What is CNN Business Fear & Greed Index?

The Fear & Greed Index is an insightful barometer of prevailing market emotions. Manifesting the delicate dance between fear-induced pressure on stock prices and greed-fueled elation, this index’s calculation draws from seven equitable indicators. Spanning from 0 to 100, with extremes of maximum fear and greed, it offers a profound glimpse into investor sentiment.

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