Investor Sentiment Declines Slightly After Dow Drops Over 100 Points

The CNN Money Fear and Greed index showed a slight decline in overall sentiment among U.S. investors on Friday.

U.S. stocks closed lower on Friday, with the S&P 500 breaking its six-session win streak. However, the benchmark index still recorded weekly gain, also notching fifth positive week in a row.

The Federal Reserve, last week, kept interest rates unchanged, but said that there could be two more rate hikes scheduled for later in the year. The consumer price index rose just 0.1% for May.

Adobe Inc. (NASDAQ:ADBE) shares rose slightly after the company reported better-than-expected second-quarter results and issued strong earnings guidance.

U.S. stock markets were closed on Monday in observation of Juneteenth.

The Dow Jones closed lower by around 109 points to 34,299.12 on Friday. The S&P 500 fell 0.37% at 4,409.59, while the Nasdaq Composite lost 0.68% to settle at 13,689.57 during the session.

Investors are awaiting earnings results from FedEx Corporation (NYSE:FDX) and La-Z-Boy Incorporated (NYSE:LZB) today.

At a current reading of 82.0, the index remained in the “Extreme Greed” zone, versus a previous reading of 83.0

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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