Dow Hits Record High As Fed Cuts Rates: Investor Sentiment Improves, Fear Index Remains In 'Greed' Zone

The CNN Money Fear and Greed index showed an improvement in the overall market sentiment, while the index remained in the “Greed” zone on Friday.

U.S. stocks settled higher on Friday, with the Dow Jones index gaining more than 150 points during the session, also hitting a fresh record high. The Federal Reserve, last week, cut rates by 25 basis points and signaled more easing ahead.

The S&P 500 gained 1.2%, while the Dow added 1% last week. The Nasdaq surged 2.2% during the period.

Among mega-cap movers, Apple Inc. AAPL jumped 3.2% on strong demand for the new iPhone 17. In China, preorders topped those of the iPhone 16 in just one minute. Apple shares climbed above $245, reaching their highest level since late February 2025.

On the economic front, the Baker Hughes oil rig count rose by 2 to 418 in the latest week.

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

The Dow Jones closed higher by around 173 points to 46,315.27 on Friday. The S&P 500 rose 0.49% to 6,664.36, while the Nasdaq Composite gained 0.72% to 22,631.48 during Friday’s session.

Investors are awaiting earnings results from Firefly Aerospace Inc. FLY and Genfit SA GNFT today.

What is CNN Business Fear & Greed Index?

At a current reading of 62.1, the index remained in the “Greed” zone on Thursday, versus a prior reading of 61.1.

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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