The Wall Street saw a glimmer of optimism on Friday as the CNN Money Fear and Greed Index edged into the ‘Neutral’ zone, indicating a slight improvement in overall market sentiment. This shift came after a mixed week of trading, fueled by the latest jobs data.
While the U.S. economy added a modest 12,000 jobs in October (a significant decrease from the 223,000 added in September), average hourly earnings continued to rise, increasing by 0.4% to $35.46. This upward trend in wages reflects the ongoing strength of the labor market, even amidst concerns about potential economic slowdown.
The day’s trading was characterized by a divergence in sector performance. While most sectors on the S&P 500 closed on a negative note, with utilities, energy, and real estate stocks bearing the brunt of the losses, consumer discretionary and information technology stocks bucked the trend and closed higher. This divergence reflects the ongoing shift in investor sentiment as they weigh economic concerns against the potential for future growth.
Amazon’s shares surged over 6% on Friday after the company posted stronger-than-expected results for the third quarter, demonstrating continued strength in the e-commerce sector. However, Apple’s stock slipped over 1% following their fourth-quarter earnings report, highlighting the challenges faced by the technology giant in a competitive market.
The Dow Jones Industrial Average closed at 42,052.19, up by approximately 289 points. The S&P 500 rose by 0.41% to 5,728.80, while the Nasdaq Composite gained 0.80%, settling at 18,239.92. Despite the positive gains on Friday, it’s worth noting that U.S. stocks overall recorded losses in October, with the Dow falling by 1.3% and the broader market index declining by 1% for the month.
Investors are now looking ahead to earnings results from Constellation Energy Corporation, Marriott International, and Wynn Resorts, hoping for further insights into the health of various sectors and the overall economic outlook.
What is the CNN Money Fear & Greed Index?
The CNN Money Fear & Greed Index is a valuable tool for understanding the current state of the market sentiment. It’s based on the premise that fear drives stock prices down while greed pushes them upward. The index, calculated using seven equal-weighted indicators, ranges from 0 to 100, with 0 representing maximum fear and 100 signifying maximum greediness. The current reading of 48.8, indicating a ‘Neutral’ zone, suggests a more balanced sentiment among investors.
Overall, Friday’s market performance showcased a complex interplay of factors, with positive signs of improving sentiment tempered by ongoing economic uncertainties.
