Dow Dips Over 500 Points Following Wholesale Inflation Data: Greed Index Remains In 'Fear' Zone

The CNN Money Fear and Greed index showed almost no change in the overall market sentiment, while the index remained in the “Fear” zone on Friday.

U.S. stocks settled lower on Friday, with the Dow Jones index falling more than 500 points during the session following the latest inflation data.

U.S. producer prices rose 0.5% month-over-month in January, compared to a revised 0.4% gain in December and above market estimates of 0.3%.

The Nasdaq fell more than 3% in February, recording its weakest monthly performance since last March. The S&P 500, meanwhile, fell almost 1% last month, while the Dow rose around 0.2%.

Most sectors on the S&P 500 closed on a positive note, with consumer staples, health care and energy stocks recording the biggest gains on Friday. However, information technology and financial stocks closed the session sharply lower.

The Dow Jones closed lower by around 521 points to 48,977.92 on Friday. The S&P 500 fell 0.43% to 6,878.88, while the Nasdaq Composite dipped 0.92% at 22,668.21 during Friday’s session.

What Is CNN Business Fear & Greed Index?

At a current reading of 42.9, the index remained in the “Fear” zone on Friday, versus a prior reading of 42.2.

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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