The CNN Money Fear and Greed index moved to the “Neutral” zone after US stocks recorded sharp gains on Friday.
The Dow climbed around 700 points on Friday following the release of jobs report, which showed that the US economy added 223,000 jobs in December, the least since December 2020, following a revised 256,000 increase in November. Average hourly earnings climbed 0.3% to $32.82 in December.
The Dow closed higher by 2.13% to 33,630.61 on Friday. The S&P 500 added 2.28% to 3,895.08, while the Nasdaq Composite jumped 2.56% to settle at 10,569.29 in the previous session.
Investors are awaiting earnings results from Acuity Brands, Inc. AYI, PriceSmart, Inc. PSMT and Commercial Metals Company CMC today.
At a current reading of 46.0, the index moved to the “Neutral” zone, compared to a previous reading of 44.0.
What is CNN Business Fear & Greed Index?
The Fear & Greed Index is a measure of the current market sentiment. It is based on the premise that higher fear exerts pressure on stock prices, while higher greed has the opposite effect. The index is calculated based on seven equal-weighted indicators. The index ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greediness.