Nasdaq Gains Over 1% as Chipmakers Recover: Investor Sentiment Improves, but Fear & Greed Index Remains in ‘Extreme Fear’ Zone

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

U.S. stocks settled mixed on Friday, with the Nasdaq Composite gaining over 1% after recording sharp losses in the previous session.

Major averages recorded losses last week, with the Nasdaq losing 3.4% and the S&P 500 falling 2.7%. The 30-stock Dow, meanwhile, lost 0.9% during the week.

Shares of Micron Technology Inc. (NASDAQ:MU) gained 5% on Friday following a 17% plunge in the previous session. Nvidia Corp. (NASDAQ:NVDA) gained around 3% after dipping 9% on Thursday.

On the earnings front, DraftKings Inc. (NASDAQ:DKNG) shares dipped 21% after the company reported worse-than-expected quarterly financial results and cut its FY26 sales guidance below estimates. Charter Communications Inc. (NASDAQ:CHTR) shares fell around 6% after the company reported third-quarter financial results.

On the economic data front, the U.S. economy added 165,000 jobs in October, well above the 65,000 economists had expected, the Bureau of Labor Statistics said Friday. The unemployment rate fell to 4.1%, compared with a 4.2% forecast. Average hourly earnings rose 0.4% from September and 3.1% from a year earlier, against expectations of 0.3% and 2.9%.

Most sectors on the S&P 500 closed on a negative note, with consumer staples, financial and real estate stocks recording the biggest losses on Friday. However, information technology and communication services stocks were among the top performers.

The Dow Jones closed lower by around 237 points to 51,285.73 on Friday. The S&P 500 gained 0.31% to 7,376.86, while the Nasdaq Composite climbed 1.09% to 24,579.42 during Friday’s session.

Investors are awaiting earnings results from Constellation Energy Corp. (NASDAQ:CEG), NRG Energy Inc. (NYSE:NRG) and Occidental Petroleum Corp. (NYSE:OXY) today.

What is CNN Business Fear & Greed Index?

At a current reading of 22, the index remained in the “Extreme Fear” zone on Friday, versus a prior reading of 20.

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 greed.

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