The US stock market continued its upward trajectory on Friday, with the Dow Jones Industrial Average reaching a new record high. The S&P 500 also experienced significant gains, closing the month with its fourth consecutive winning period. This positive momentum reflects the overall market sentiment, which remains optimistic.
The CNN Money Fear & Greed Index, a gauge of investor sentiment, remained in the ‘Greed’ zone, indicating a prevailing optimistic outlook among investors. This sentiment was further bolstered by a number of positive economic indicators. Personal income and spending both rose in July, signaling a healthy consumer environment. The US core PCE price index, a key inflation measure, remained in line with market expectations, reinforcing the stability of the economy. The University of Michigan consumer sentiment index also saw a revision upwards, suggesting a positive outlook among consumers.
Individual stock movements were also notable. Elastic N.V., a cloud computing company, saw its shares drop significantly after reporting disappointing financial results and issuing below-estimate revenue guidance. In contrast, MongoDB, Inc., a database technology provider, experienced a surge in its stock price after releasing better-than-expected second-quarter financial results and providing a strong outlook for the future.
Investors are now awaiting earnings reports from several companies, including HealthEquity, Inc., Sportsman’s Warehouse Holdings, Inc., and Zscaler, Inc., which could provide further insights into the current state of the market.
The Fear & Greed Index, a widely followed indicator of market sentiment, is calculated using seven equal-weighted indicators. It ranges from 0 to 100, with 0 representing maximum fear and 100 signaling maximum greed. The index operates on the premise that fear exerts downward pressure on stock prices, while greed has the opposite effect. The current reading of 63.4, indicating a ‘Greed’ sentiment, suggests that investors are feeling optimistic about the market.
