PrintS&P 500 Gains For Eighth Week: Investor Sentiment Improves, Fear Index Remains In 'Greed' Zone
BY Benzinga | ECONOMIC | 02:06 AM EDTThe CNN Money Fear and Greed index showed some improvement in the overall market sentiment, while the index remained in the “Greed” zone on Friday.
U.S. stocks settled higher on Friday, with the Dow Jones index recording another record close as diplomatic signals on Iran helped cool oil and pulled Treasury yields lower for a third consecutive session.
The S&P 500 gained 0.9% last week, notching its eighth consecutive winning week. The Dow surged 2.1%, while the Nasdaq rose 0.5% last week.
In earnings, shares of BJ's Wholesale Club Holdings Inc. fell over 8% on Friday after the company reported earnings for the first quarter.
On the economic data front, the University of Michigan consumer sentiment index was revised to a record low 44.8 in May from a preliminary 48.2, a third straight monthly drop blamed on Hormuz-driven gasoline costs.
Most sectors on the S&P 500 closed on a positive note, with health care, utilities and industrials stocks recording the biggest gains on Friday. However, consumer staples and communication services stocks bucked the overall market trend, closing the session lower.
The Dow Jones closed higher by around 294 points to 50,579.70 on Friday. The S&P 500 rose 0.37% to 7,473.47, while the Nasdaq Composite gained 0.19% at 26,343.97 during Friday's session.
Investors are awaiting earnings results from AutoZone Inc.
What Is CNN Business Fear & Greed Index?
At a current reading of 58.6, the index remained in the “Greed” zone on Friday, versus a prior reading of 58.1.
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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