Dow Tops 50,000 For First Time Ever: Investor Sentiment Improves, Fear & Greed Index Moves To 'Neutral' Zone

The CNN Money Fear and Greed index showed an increase 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 jumping more than 1,200 points during the session. The index notched fresh record highs Friday, topping the 50,000-point milestone.

Stocks most battered by the software-led sell-off staged the sharpest snap-back rallies. Shares of Robinhood Markets Inc. (NASDAQ:HOOD) jumped roughly 14%, while Coinbase Global Inc. (NASDAQ:COIN) rose about 13%, making them the top performers within the S&P 500.

In earnings, shares of Amazon.com Inc. (NASDAQ:AMZN) slid more than 5% despite reporting stronger-than-expected earnings. Shares of AutoNation Inc. (NYSE:AN) jumped more than 6% on Friday after the company posted results for the fourth quarter.

On the economic data front, the University of Michigan’s consumer sentiment index increased by 0.9 points to a reading of 57.3 in February, topping market estimates of 55.

Most sectors on the S&P 500 closed on a positive note, with industrials, energy and information technology stocks recording the biggest gains on Friday. However, consumer discretionary and communication services stocks bucked the overall market trend, closing the session lower.

The Dow Jones closed higher by around 1,207 points to 50,115.67 on Friday. The S&P 500 jumped 1.97% to 6,932.30, while the Nasdaq Composite jumped 2.18% at 23,031.21 during Friday's session.

Investors are awaiting earnings results from Becton Dickinson and Co. (NYSE:BDX), Kyndryl Holdings Inc. (NYSE:KD) and Aecom (NYSE:ACM) today.

What Is CNN Business Fear & Greed Index?

At a current reading of 45, the index moved to the “Neutral” zone on Friday, versus a prior reading of 34.2.

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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