Nasdaq Tumbles Over 2%, Records Weekly Loss: Investor Sentiment Weakens, Fear & Greed Index Moves to ‘Extreme Fear’ Zone

The CNN Money Fear and Greed index showed a decline in overall market sentiment, while the index moved to the “Extreme Fear” zone on Friday. U.S. stocks settled lower on Friday, with the Nasdaq Composite dipping more than 2% during the session to record its worst week since June. The S&P 500 declined about 2% last week, while the Nasdaq tumbled more than 4%. The Dow, however, gained 0.7% for the week. Chipmakers recorded sharp losses, as the VanEck Semiconductor ETF tumbled 3%, amid declines in shares of Micron Technology Inc. (NASDAQ:MU), Advanced Micro Devices Inc. (NASDAQ:AMD) and SanDisk Corp. (NASDAQ:SNDK). Oil stayed elevated as conflict around the Strait of Hormuz kept supply risks front and center. On the earnings front, Citizens Financial Group Inc. (NYSE:CFG) reported better-than-expected earnings for the third quarter. M&T Bank Corp. (NYSE:MTB) reported upbeat earnings for the third quarter on Friday. On the economic data front, U.S. export prices surged 2.2% in September, recording the largest monthly gain since April, following a 1.2% rise in August. U.S. import prices rose by 1.1% month-over-month in September, above market estimates of a 0.8% gain. U.S. industrial production climbed 0.7% month-over-month in September, the most in five months and versus market estimates of 0.4%. Energy, utilities and consumer staples were among the few S&P 500 sectors to finish higher Friday, while communication services and information technology were among the biggest losers. The Dow Jones closed lower by around 175 points to 52,002.40 on Friday. The S&P 500 dipped 1.09% to 7,659.44, while the Nasdaq Composite tumbled 2.14% to 26,140.03 during Friday’s session. Investors are awaiting earnings results from Fifth Third Bancorp (NYSE:FITB), Cleveland-Cliffs Inc. (NYSE:CLF) and Steel Dynamics Inc. (NASDAQ:STLD) today. What is CNN Business Fear & Greed Index? At a current reading of 18, the index moved to the “Extreme Fear” zone on Friday, versus a prior reading of 30. 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. Photo via Shutterstock