Fear & Greed Index In 'Extreme Greed' Zone; US Stocks Gain For Eighth Week

The CNN Money Fear and Greed index showed a slight decline in overall market sentiment, while the index remained in the "Extreme Greed" zone on Friday.

U.S. stocks closed mixed on Friday, with all three major indices recording their eighth positive week in a row. The S&P 500 gained by 0.8% last week, while the Dow rose 0.2%. U.S. stock market was closed on Monday for Christmas.

On the economic data front, core PCE prices in the U.S. rose by 0.1% from the prior month in November. However, core prices rose by 3.2% from the prior year, compared to market estimates of 3.3%. The University of Michigan's consumer sentiment was revised higher to 69.7 in December versus a preliminary reading of 69.4.

NIKE, Inc. NKE posted better-than-expected earnings for its second quarter, but sales missed expectations.

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

The Dow Jones closed lower by around 18 points to 37,385.97 on Friday. The S&P 500 rose 0.17% at 4,754.63, while the Nasdaq Composite gained 0.19% at 14,992.97 during Friday’s session.

At a current reading of 76.8, the index remained in the "Extreme Greed" zone on Friday versus a prior reading of 76.9.

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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