The CNN Money Fear and Greed index showed an improvement in overall market sentiment, with the index moving to the "Greed" zone on Friday.

U.S. stocks closed slightly higher on Friday, with the S&P 500 notching gains for the third straight week. The S&P 500 gained 2.2% last week, while the Dow Jones ended the week with a 1.9% gain.

Shares of The Gap, Inc. (NYSE:GPS) jumped more than 30% on Friday after the company reported better-than-expected third-quarter financial results. Shares of The Buckle, Inc. (NYSE:BKE) gained 8% on Friday after the company reported upbeat third-quarter earnings.

On the economic data front, housing starts in the U.S. increased by 1.9% month-over-month to an annualized rate of 1.372 million in October, while building permits rose by 1.1% to an annual rate of 1.487 million.

Most sectors on the S&P 500 closed on a positive note, with energy and consumer discretionary stocks recording the biggest gains on Friday. However, communication services and information technology stocks bucked the overall market trend, closing the session lower.

The Dow Jones closed higher by around 2 points on Friday. The S&P 500 rose 0.13% at 4,514.02, while the Nasdaq Composite climbed 0.08% at 14,125.48 during Friday’s session.

At a current reading of 58.2, the index moved to the "Greed" zone on Friday versus a prior reading of 56.3.

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.

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