Nasdaq Sees Significant Gains as Nvidia and Tesla Lead a Market Comeback

On Friday, the CNN Money Fear and Greed index reflected some positive movement in market sentiment, yet it remained firmly in the "Extreme Fear" zone. This was a notable observation as U.S. stocks experienced a rally, with the Dow Jones index recording a robust gain of more than 600 points during the trading day.

The technology sector made a substantial recovery from the losses it faced on Thursday. Companies such as Nvidia Corp. saw their stock prices increase by 4%, while Tesla Inc. rose by 3.9% on the same day. These gains in technology stocks played a significant role in boosting overall market confidence.

The release of Personal Consumption Expenditures (PCE) data also provided some much-needed relief for investors, as it indicated the first decline in pricing over four months. Insights from the CME FedWatch Tool suggested that this data strengthened expectations for around two quarter-point rate cuts by the Federal Reserve in the year 2025.

All sectors of the S&P 500 closed positively on Friday, with the information technology, financial, and consumer discretionary sectors leading the way in gains. This broad-based rally illustrates the rebuilding of investor confidence across various market segments.

The Dow Jones Industrial Average finished the trading session higher by approximately 601 points, closing at 43,840.91. The S&P 500 experienced a rise of 1.59%, concluding at 5,954.50, while the Nasdaq Composite recorded an increase of 1.63% to end at 18,847.28.

Looking ahead, investors are eagerly awaiting earnings results from companies including California Resources Corp., Nomad Foods Ltd., and Okta Inc. today, which could further influence market trends.

Understanding the CNN Business Fear & Greed Index

The CNN Business Fear and Greed Index, currently reading at 19.7, continues to reflect conditions in the "Extreme Fear" zone, though it marked an improvement from its previous position of 18.7. This index serves as a benchmark for overall market sentiment, based on the premise that heightened fear tends to apply pressure on stock prices, while increased greed often has the opposite effect. The index is created using seven equal-weighted indicators, with values ranging from 0 to 100, where 0 signifies maximum fear and 100 indicates maximum greed.

stocks, market, sentiment