The CNN Money Fear and Greed index showed a slight increase in the overall fear level, while the index remained in the “Fear” zone on Friday.
U.S. stocks settled higher on Friday, with the Dow Jones index gaining over 100 points during the session, supported by economic data that strengthened expectations of a Federal Reserve interest rate cut this week.
The core Personal Consumption Expenditures price index — the Fed’s preferred inflation gauge — slowed slightly, dropping from 2.9% to 2.8% year over year in September, a tad below expectations. According to the CME FedWatch tool, markets still place an 87% chance on a 25‑basis‑point cut next week.
The preliminary December consumer survey from the University of Michigan showed an improvement in the overall sentiment, up from 51 to 53.3, with inflation expectations softening further.
Meanwhile, Netflix Inc. (NASDAQ:NFLX) dropped 2.9% in a volatile session, after announcing a definitive agreement to acquire Warner Bros. Discovery Inc. (NASDAQ:WBD), including its film and television studios as well as HBO and HBO Max — a transaction valuing Warner Bros. Discovery at $27.75 per share, implying an equity value of roughly $72 billion.
In earnings news, shares of Ulta Beauty Inc. (NASDAQ:ULTA) surged 12.7% after the company beat analysts’ estimates and raised its outlook. Shares of ServiceTitan Inc. (NASDAQ:TTAN) rose 10.5% during Friday’s session after the company reported better-than-expected third-quarter financial results.
Most sectors on the S&P 500 closed on a negative note, with utilities, health care and energy stocks recording the biggest losses on Friday. However, communication services and information technology stocks closed the session higher.
The Dow Jones closed higher by around 104 points to 47,954.99 on Friday. The S&P 500 gained 0.19% to 6,870.40, while the Nasdaq Composite climbed 0.31% to 23,578.13 during Friday's session.
Investors are awaiting earnings results from Toll Brothers Inc. (NYSE:TOL), Phreesia Inc. (NYSE:PHR) and Compass Minerals International, Inc. (NYSE:CMP) today.
What is CNN Business Fear & Greed Index?
At a current reading of 40.4, the index remained in the “Fear” zone on Friday, versus a prior reading of 40.6.
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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