The CNN Money Fear and Greed index showed further improvement in overall sentiment among U.S. investors on Friday.
U.S. stocks closed higher amid hopes of a debt ceiling resolution, with the S&P 500 tech and consumer discretionary sectors jumping over 2% each on Friday.
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The Nasdaq recorded its fifth consecutive weekly gain, adding around 2.5%.
Data released Friday showed the personal consumption expenditures index, the Fed’s preferred inflation gauge, rising 0.4% in April and 4.7% year-over-year.
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The Dow Jones closed higher by around 329 points to 33,093.34 on Friday. The S&P 500 rose 1.30% at 4,205.45, while the Nasdaq Composite climbed 2.19% to settle at 12,975.69 during the session.
Investors are awaiting earnings results from HP Inc. (NYSE: HPQ), Skyline Champion Corporation (NYSE: SKY) and Box, Inc (NYSE: BOX) today.
At a current reading of 68.0, the index remained in the “Greed” zone, versus a previous reading of 63.0
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What is CNN Business Fear & Greed Index?
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.
