The CNN Money Fear and Greed index showed further decline in the overall market sentiment, while the index remained in the “Extreme Fear” zone on Friday.

U.S. stocks settled lower on Friday, with the Dow Jones index tumbling over 2,200 points during the session.

Most sectors on the S&P 500 closed on a negative note, with financial, energy, and information technology stocks recording the biggest losses on Friday. However, consumer staples stocks bucked the overall market trend, closing the session higher.

The Dow Jones closed lower by around 2,231 points to 38,314.86 on Friday. The S&P 500 dipped 5.97% to 5,074.08, while the Nasdaq Composite tumbled 5.82% to 15,587.79 during Friday's session.

What is CNN Business Fear & Greed Index?

At a current reading of 4.2, the index remained in the “Extreme Fear” zone on Friday, versus a prior reading of 6.0.

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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