The U.S. stock market experienced a positive week, driven by improving market sentiment and strong economic data. The CNN Money Fear and Greed index, while still in the ‘Fear’ zone, showed improvement, signaling a potential shift towards optimism. The S&P 500 gained a significant 3.9% last week, marking its best performance since November 2023. The Nasdaq and Dow Jones also saw substantial gains, rising by 5.2% and 2.9%, respectively.
The positive market momentum was fueled by a series of encouraging economic indicators. Housing starts, despite declining in July, remained at a healthy level. Retail sales came in stronger than expected, and weekly jobless claims continued to decline, suggesting a robust economy.
Earnings season has been a major driver for the market. Over 78% of the S&P 500 companies reporting so far have exceeded market estimates, boosting investor confidence. Notable performers included NVIDIA Corporation, whose shares gained over 18% last week, and H&R Block, Inc., whose shares jumped over 12% following strong financial results.
The stock market closed on a positive note on Friday. The Dow Jones gained around 97 points, the S&P 500 rose by 0.20%, and the Nasdaq Composite gained 0.21%.
The CNN Money Fear & Greed Index, a measure of market sentiment, is calculated based on seven indicators, ranging from 0 to 100, where 0 signifies maximum fear and 100 indicates maximum greed.
Investors are keenly watching upcoming earnings results from companies like The Estée Lauder Companies Inc., Fabrinet, and Palo Alto Networks, Inc. These releases will provide further insights into the health of various sectors and could influence market sentiment going forward.
