The CNN Money Fear and Greed index moved to the “neutral” zone, after US stocks recorded their first weekly surge since mid-August.
Wall Street recorded gains in the previous session driven by communication services and technology stocks. For the week, the Dow gained 2.7%, while the S&P 500 surged 3.6%.
US inflation data is scheduled for release tomorrow, with analysts expecting further easing in annual inflation level during August.
The Dow jumped 1.19% to close at 32,151.71 on Friday. The S&P 500 rose 1.53% to 4,067.36, while the Nasdaq Composite gained 2.11% to settle at 12,112.31 in the previous session, amid a slight rise in stocks, including, Microsoft Corporation (NASDAQ:MSFT) and Amazon.com, Inc. (NASDAQ:AMZN).
At a current reading of 45.0, the index moved to the “neutral” zone, following a previous reading of 42.0.
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.
