The CNN Money Fear and Greed index showed some easing in the fear level, while the index remained in the "Fear" zone on Friday.
U.S. stocks settled lower on Friday, with the Dow Jones index dipping more than 300 points during the session. Shares of Tesla Inc. (NASDAQ:TSLA) tumbled around 5%, while Nvidia (NASDAQ:NVDA) lost 2% on Friday. However, major indexes still recorded gains last week.
The blue-chip index gained around 0.4% last week, ending a three-week losing streak, while the S&P 500 added 0.7%. The Nasdaq, meanwhile, rose about 0.8% during the week.
On the economic data front, U.S. wholesale inventories declined by 0.2% month-over-month to $902 billion in November compared to a revised 0.1% gain in the previous month and versus market estimates of a 0.2% increase. The U.S. trade deficit in goods increased to $102.86 billion in November, from a revised gap of $98.3 billion in the previous month and versus market estimates of a $100.7 billion deficit.
All sectors on the S&P 500 closed on a negative note, with consumer discretionary, communication services, and information technology stocks recording the biggest losses on Friday.
The Dow Jones closed lower by around 334 points to 42,992.21 on Friday. The S&P 500 fell 1.11% to 5,970.84, while the Nasdaq Composite dipped 1.49% to 19,722.03 during Friday's session.
What is CNN Business Fear & Greed Index?
At a current reading of 34.3, the index remained in the "Fear" zone on Friday, versus a prior reading of 33.3.
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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