Investor Optimism Improves Slightly Following Jobs Data; Dow Jumps 450 Points
The CNN Money Fear and Greed index showed slight improvement in the overall market sentiment, while the index remained in the “Fear” zone on Friday.
U.S. stocks settled higher on Friday, with the Dow Jones index surging 450 points following the release of jobs data.
U.S. employers added 175,000 nonfarm payrolls in April, marking a reduction from the upwardly revised 315,000 reading in March and missing the expected 238,000, the Bureau of Labor Statistics said Friday. The unemployment rate went from 3.8% to 3.9%, more than the expected 3.8%. Average hourly earnings edged down from 4.1% to 3.9% compared to April 2023, falling more than the expected dip to 4%.
Apple, Inc. (NASDAQ:AAPL) shares gained 6% on Friday after the company reported better-than-expected results for its second quarter. The company announced a $110-billion stock buyback program and a one-penny-per-share increase in its quarterly dividend. Owens & Minor, Inc. (NYSE:OMI) dipped more than 25% on Friday following first-quarter results
Most sectors on the S&P 500 closed on a positive note, with communication services, materials and information technology stocks recording the biggest gains on Friday. However, energy stocks bucked the overall market trend, closing the session lower.
The Dow Jones closed higher by around 450 points to 38,675.68 on Friday. The S&P 500 rose 1.26% at 5,127.79, while the Nasdaq Composite jumped 1.99% at 16,156.33 during Friday's session.
Investors are awaiting earnings results from The Goodyear Tire & Rubber Company (NASDAQ:GT), The Williams Companies, Inc. (NYSE:WMB), and Tyson Foods, Inc. (NYSE:TSN) today.
At a current reading of 39.6, the index remained in the “Fear” zone on Friday, versus a prior reading of 39.1.
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.