The CNN Money Fear and Greed index is slowly inching toward the “greed” zone, but still remained in the “neutral” zone on Monday following a sharp rise in the US stocks on Friday.
The S&P 500 and the Nasdaq recorded gains for fourth straight week, with the recent gains coming from data showing a slower-than-projected increase in consumer prices and an unexpected decline in producer prices for July.
The S&P 500 and Nasdaq notched their biggest weekly winning streaks since November.
After a volatile start to the year, upbeat earnings results for the second quarter have provided support to U.S. stock markets.
The Dow Jones gained around 424 points to close at 33,761.05 on Friday. The S&P 500 rose 1.73%, while the Nasdaq Composite jumped 2.09%, to settle at 13,047.19 in the previous session.
Investors are now awaiting earnings results from Li Auto Inc. (NASDAQ:LI), Fabrinet (NYSE:FN) and Tencent Music Entertainment Group (NYSE:TME), scheduled for release today.
At a current reading of 55.0, the index remained in the “neutral” zone on Monday, following a previous reading of 53.0.
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.
