The CNN Money Fear and Greed index moved to the “extreme fear” zone after the US stocks recorded losses on Friday following the release of nonfarm payrolls data.
Traders assessed September’s jobs report, which showed nonfarm payrolls rising by 263,000 jobs last month, above market expectations of 250,000.
Shares of Advanced Micro Devices, Inc AMD dropped around 13.9% on Friday after the company lowered its Q3 sales guidance below analyst estimates.
The Dow fell 2.11% to close at 29,296.79 on Friday, while the S&P 500 fell 2.80% to 3,639.66. The Nasdaq Composite fell 3.80% to settle at 10,652.40 in the previous session.
The major indices, however, settled the week higher but gave back most of the gains recorded earlier during the week. The Dow gained 2% last week, while the S&P gained around 1.5%.
At a current reading of 22.0, the index moved to the “extreme fear” zone, following a previous reading of 27.0.
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.
Image and article originally from www.benzinga.com. Read the original article here.