The CNN Money Fear and Greed Index showed a further deterioration in overall sentiment among US investors on Friday.
US stocks fell to a six-month low of 57.7 for May on Friday after an initial reading on the University of Michigan consumer sentiment index closed slightly lower on Friday versus economists’ estimate of 63.0.
Import prices rose 0.4% month-on-month in April, marking the first increase so far in 2023.
On Friday, the Dow Jones closed down nearly 9 points at 33,300.62. The S&P 500 fell 0.16% to 4,124.08 during the session, while the Nasdaq Composite lost 0.35% to 12,284.74. The Dow and S&P 500 fell for the second week in a row.
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At the current reading of 58.0, the index remained in the “greed” zone as compared to the previous reading of 59.0
What is the CNN Business Fear and Greed Index?
The Fear and Greed Index is a measure of the current market sentiment. This is on the grounds that high fear tends to put pressure on stock prices, while high greed has the opposite effect. The index is calculated on the basis of seven equally weighted indicators. The index ranges from 0 to 100, where 0 represents maximum fear and 100 indicates maximum greed.