Nasdaq Gains 150 Points But Records Losses For November: Fear & Greed Index Remains In 'Extreme Fear' Zone
Avi Kapoor 11 months ago
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Stocks rise, led by tech sector, as Fed expected to cut rates. CNN Fear & Greed index shows easing fear but remains in Extreme Fear zone.
The CNN Money Fear and Greed index showed some easing in the overall fear level, while the index remained in the “Extreme Fear” zone on Friday.
U.S. stocks settled higher on Friday, with the Nasdaq Composite gaining for the fifth straight session as rate cut hopes surged and risk appetite returned across tech, crypto and commodities. However, the index recorded losses for November. The Nasdaq dipped almost 2% last month, while the S&P 500 and Dow gained slightly during November, after recording gains last week.
The Dow jumped more than 3% last week, while the S&P 500 surged almost 4%. The Nasdaq Composite climbed over 4% during the week.
Traders now see an 88% chance the Federal Reserve will cut interest rates by 25 basis points at its Dec. 10 meeting, up from just 50% last week, according to CME FedWatch data.
Intel Corp. (NASDAQ:INTC) led the S&P 500, jumping over 10%, as dip-buying returned to November's beaten-down tech names.
Most sectors on the S&P 500 closed on a positive note, with energy, communication services and consumer discretionary stocks recording the biggest gains on Friday. However, health care stocks bucked the overall market trend, closing the session lower.
The Dow Jones closed higher by around 289 points to 47,716.42 on Friday. The S&P 500 gained 0.54% to 6,849.09, while the Nasdaq Composite gained 0.65% to 23,365.69 during Friday's session.
Investors are awaiting earnings results from MongoDB Inc. (NASDAQ:MDB), Vestis Corp. (NYSE:VSTS) and Credo Technology Group Holding Ltd. (NASDAQ:CRDO) today.
What is CNN Business Fear & Greed Index?
At a current reading of 23.6, the index remained in the “Extreme Fear” zone on Friday, versus a prior reading of 19.9.
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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