The CNN Money Fear and Greed index showed further improvement in overall market sentiment, while the index remained in the “Greed” zone on Friday. This indicates that investors are feeling optimistic and confident about the market.
U.S. stocks closed higher on Friday, with the S&P 500 settling at an all-time high during the session. This is a positive sign for the market, as all three major indices are now in the positive zone for 2024.
However, not all stocks had a positive day. iRobot Corporation (NASDAQ: IRBT) shares fell around 27% on Friday following a report suggesting that the EU plans to block Amazon’s acquisition of the company. On the other hand, State Street Corporation (NYSE: STT) shares gained 2% after the company posted better-than-expected earnings for its fourth quarter.
On the economic data front, U.S. existing-home sales fell by 1.0% from a month ago to an annualized rate of 3.78 million units in December, hitting the lowest level since August 2010. This was below market estimates of 3.82 million units. However, the University of Michigan’s consumer sentiment jumped to 78.8 in January, the highest level since July 2021. This is a positive sign for consumer confidence.
Most sectors on the S&P 500 closed on a positive note, with information technology, financial, and communication services stocks recording the biggest gains on Friday. However, utilities and consumer staples stocks bucked the overall market trend, closing the session lower.
The Dow Jones closed higher by around 395 points to 37,863.80 on Friday. The S&P 500 rose 1.23% to 4,839.81, while the Nasdaq Composite rose 1.70% to 15,310.97 during Friday’s session. These gains indicate a strong performance for the overall market.
Investors are now eagerly awaiting earnings results from United Airlines Holdings, Inc. (NASDAQ: UAL), Brown & Brown, Inc. (NYSE: BRO), and Zions Bancorporation (NASDAQ: ZION) today. These results will provide further insight into the performance of these companies and may impact market sentiment.
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. It ranges from 0 to 100, with 0 representing maximum fear and 100 signaling maximum greediness. With a current reading of 71.9, the index remained in the “Greed” zone on Friday, indicating a positive market sentiment.
Overall, the market showed improvement in sentiment with the Fear & Greed Index remaining in the “Greed” zone. The positive performance of major indices, along with some individual stock gains, contributed to this optimism. However, it’s important for investors to stay informed and cautious as market conditions can change rapidly.
