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Investor Sentiment Shift After PPI Data; US Stocks End 5-Week Win Streak Market Meltdown: Investor Sentiment Sinks as US Stocks Snap 5-Week Win Streak

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  Market Meltdown: Investor Sentiment Sinks as US Stocks Snap 5-Week Win Streak

The CNN Money Fear and Greed index revealed a downturn in overall market sentiment, signaling a shift from “Extreme Greed” on Friday.

On Friday, U.S. stocks concluded the day on a sour note, with the Dow Jones index plummeting by over 100 points during the session.

All three major indices suffered losses last week, bringing their impressive five-week winning streaks to a halt. The S&P 500 experienced a 0.42% dip, while the Dow registered a 0.11% decline over the week.

In economic news, U.S. producer prices for final demand surged by 0.3% month-over-month in January, marking the most substantial increase in five months, in contrast to a 0.1% drop in the preceding month. Contrary to analyst predictions of a 0.1% rise in producer prices, the actual figures surpassed expectations. Concurrently, the University of Michigan consumer sentiment climbed to a reading of 79.6 in February from 79 in January.

Following the PPI data release, the 10-year Treasury yield surged beyond the 4.3% level.

Shares of TreeHouse Foods, Inc. THS took a nosedive, plummeting by more than 15% on Friday subsequent to the company reporting fourth-quarter revenue results below expectations and issuing an FY24 outlook that fell short of estimates. Conversely, The Trade Desk, Inc. TTD witnessed a surge of over 17% after the company unveiled a mixed bag of fourth-quarter financial results.

Most sectors on the S&P 500 wrapped up the day in negative territory, with communication services, real estate, and information technology stocks leading the losses on Friday. However, materials and healthcare stocks deviated from the overall market trend, ending the session on a high note.

On Friday, the Dow Jones concluded lower by about 145 points at 38,627.99. The S&P 500 experienced a 0.48% drop to 5,005.57, while the Nasdaq Composite slumped by 0.82% to 15,775.65 during the day’s session.

Investors are eagerly anticipating earnings reports from Fluor Corporation FLR, The Home Depot, Inc. HD, Palo Alto Networks, Inc. PANW, and Walmart Inc. WMT today.

The index, currently at 77.3, maintained its presence in the “Extreme Greed” zone on Friday, down from a previous reading of 79.1.

What is CNN Business Fear & Greed Index?

The Fear & Greed Index serves as a gauge of the prevailing market sentiment. It posits that heightened fear exerts downward pressure on stock prices, while increased greed has the opposite effect. This index is computed based on seven equally weighted indicators and ranges from 0 to 100, where 0 signifies maximum fear and 100 denotes heightened greed.

 

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