US Market Trembles: Fear & Greed Index Hits ‘Extreme Fear

Last updated: November 19, 2023

The Fear and Greed Index from CNN Money has taken a nosedive into the “Extreme Fear” zone, signaling a growing unease among US investors.

US Market Trembles: Fear & Greed Index Hits 'Extreme Fear
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This shift came as US stocks mostly closed lower on Friday, October 27, except the Nasdaq, which saw a boost thanks to Amazon’s stronger-than-expected Q3 results.

However, not all companies share Amazon’s good fortune. Chevron Corporation took a 6.7% hit after disappointing Q3 results, while Exxon Mobil Corporation shares dipped by 1.9%.

Economic data also painted a mixed picture. Core PCE prices in the US rose by 0.3% from the previous month in September, while the annual rate fell to 3.7%. Meanwhile, the University of Michigan’s consumer sentiment for the US rose slightly to 63.8 in October.

The S&P 500 saw most sectors close negatively, with energy, financial, and utilities stocks taking the biggest hits. However, consumer discretionary and information technology stocks swam against the tide, ending the session on a high note.

The Dow Jones closed lower by around 367 points to 32,417.59 on Friday, October 27. The S&P 500 fell 0.48% at 4,117.37, while the Nasdaq Composite gained 0.38% at 12,643.01. All three major indices recorded weekly losses, with the Dow and S&P 500 falling around 2.1% and 2.5%, respectively.

Business investors are now holding their breath for earnings results from ON Semiconductor Corporation, Pinterest, Inc., and McDonald’s Corporation.

The Fear & Greed Index, a barometer of market sentiment, operates on the principle that fear drives down stock prices, while greed pushes them up. The index, which ranges from 0 (maximum fear) to 100 (maximum greed), stood at a worrying 23.9 on Friday, down from 29.

As the market continues to wobble, investors are left to wonder: is it time to batten down the hatches, or is there a silver lining on the horizon? Only time will tell.

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