The CNN Money Fear and Greed index showed some easing in the overall fear level, while the index remained in the "Fear" zone on Friday.

U.S. stocks settled higher on Friday, with the S&P 500 and Nasdaq Composite snapping a five-day losing streak. Tech stocks were among the top performers, with shares of Nvidia Corp. (NASDAQ:NVDA) gaining around 4.5% during the session.

On the economic data front, the ISM manufacturing PMI increased by 0.9 points to a reading of 49.3 in December, topping market estimates of 48.4.

All sectors on the S&P 500 closed on a positive note, with consumer discretionary, information technology, and real estate stocks recording the biggest gains on Friday.

The Dow Jones closed higher by around 340 points to 42,732.13 on Friday. The S&P 500 gained 1.26% to 5,942.47, while the Nasdaq Composite climbed 1.77% at 19,621.68 during Friday's session.

Investors are awaiting earnings results from Commercial Metals Company (NYSE:CMC) today.

What is CNN Business Fear & Greed Index?

At a current reading of 31.7, the index remained in the "Fear" zone on Friday, versus a prior reading of 26.7.

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.

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