Nasdaq Falls Over 200 Points Amid GDP Revision: Investor Sentiment Declines, Fear & Greed Index In 'Extreme Fear' Zone

The CNN Money Fear and Greed index showed an increase in the overall fear level, while the index remained in the “Extreme Fear” zone on Friday.

U.S. stocks settled lower on Friday, with the Nasdaq Composite falling more than 200 points during the session as investors weighed a stark downward revision to fourth-quarter economic growth against a sticky inflation reading before the oil shock of the war in Iran.

The Bureau of Economic Analysis revised fourth-quarter 2025 GDP growth to 0.7% annualized, down 0.7 percentage points from its advance estimate.

The January Core Personal Consumption Expenditure (PCE) price index ? the Fed's favorite inflation gauge ? showed 3.1% annual increase, up from the previous 3%. The data marks a further departure from the Fed's 2% target.

Washington temporarily eased sanctions on Russian crude to expand global supply, but Iran-U.S. tensions continued to threaten Persian Gulf energy flows and kept crude prices elevated.

The S&P 500 recorded a 1.6% loss last week, while the 30-stock Dow dipped about 2%. The tech-heavy Nasdaq declined 1.3% during the week.

In earnings, shares of VEON Ltd. (VEON) jumped 14% on Friday after the company reported better-than-expected quarterly sales results and issued FY26 sales guidance above estimates. El Pollo Loco Holdings Inc (LOCO). shares climbed 17% after the company reported better-than-expected fourth-quarter financial results.

Most sectors on the S&P 500 closed on a negative note, with information technology, materials and communication services stocks recording the biggest losses on Friday. However, consumer staples and utilities stocks bucked the overall market trend, closing the session higher.

The Dow Jones closed lower by around 119 points to 46,558.47 on Friday. The S&P 500 fell 0.61% to 6,632.19, while the Nasdaq Composite dipped 0.93% at 22,105.36 during Friday's session.

Investors are awaiting earnings results from Dollar Tree Inc. (DLTR) , Science Applications International Corp. (SAIC) and Semtech Corp. (SMTC) today.

What Is CNN Business Fear & Greed Index?

At a current reading of 20, the index remained in the “Extreme Fear” zone on Friday, versus a prior reading of 22.5.

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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