Dow Falls Over 100 Points, Records Weekly Loss: Investor Sentiment Weakens, but Fear Index Remains in ‘Gr

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

U.S. stocks settled lower on Friday, with the Dow Jones index falling more than 100 points during the session.

Meanwhile, the S&P 500 gained 0.4%, recording gains for the third straight week, while the Nasdaq also rose by 0.1%. The Dow, however, fell 0.6% last week.

On the economic data front, the University of Michigan’s consumer sentiment index declined to 51 in early August, compared to 55.2 in the previous month and missing market estimates of 54.5. U.S. retail sales declined 0.6% month-over-month in July, following a 0.2% gain in June and missing market estimates of a 0.1% rise.

On the earnings front, Eton Pharmaceuticals Inc (NASDAQ: ETON ) shares jumped over 44% after the company reported better-than-expected quarterly financial results and issued FY26 revenue guidance above estimates. Shares of KinderCare Learning Companies Inc. (NYSE: KLC ) dipped 46% after the company reported worse-than-expected second-quarter financial results and cut its FY26 guidance below estimates

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Most sectors on the S&P 500 closed on a positive note, with energy, utilities and materials stocks recording the biggest gains on Friday. However, health care and information technology stocks were among the worst performers.

The Dow Jones closed lower by around 108 points to 53,732.41 on Friday. The S&P 500 fell 0.17% to 7,785.76, while the Nasdaq Composite declined 0.28% at 26,729.16 during Friday’s session.

Investors are awaiting earnings results from XP Inc. (NASDAQ: XP ), Fabrinet (NYSE: FN ) and Flexsteel Industries Inc. (NASDAQ: FLXS ) today.

What is CNN Business Fear & Greed Index?

At a current reading of 65, the index remained in the “Greed” zone on Thursday, versus a prior reading of 66.6.

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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