The Fear & Greed Index, as reported by CNN Money, indicated a slight positive shift in market sentiment while still reflecting an overall sense of fear among investors. Despite the improvements, the index remained in the "Fear" zone, showcasing some apprehension in the market. Friday's trading session saw U.S. stocks, particularly the Dow Jones index, experiencing a significant uptick, gaining 450 points after the release of employment figures.
According to the Bureau of Labor Statistics, U.S. employers added 175,000 nonfarm payrolls in April, which was a decrease from the previous month's revised reading of 315,000. This figure fell short of the expected 238,000 new jobs, contributing to concerns in the market. Additionally, the unemployment rate inched up from 3.8% to 3.9%, surpassing the anticipated rate of 3.8%. The average hourly earnings also saw a decline, dropping from 4.1% to 3.9% compared to the previous month, missing the projected decrease to 4%.
Apple Inc. saw a notable increase in its stock value, rising by 6% on Friday following a strong performance in its second quarter. The company's announcement of a stock buyback program and increased dividends led to a positive investor reaction. In contrast, Owens & Minor, Inc. faced a significant decline of over 25% after releasing its first-quarter results, showcasing a negative outcome for the company.
Despite mixed performance across sectors, most areas in the S&P 500 closed positively on Friday. Sectors like communication services, materials, and information technology recorded significant gains, while energy stocks deviated from the trend, ending the session on a lower note. The overall optimism in the market was reflected in the Dow Jones closing higher by 450 points, the S&P 500 rising by 1.26%, and the Nasdaq Composite jumping by 1.99% during Friday's trading session.
Investor focus is now turning to upcoming earnings reports from companies like The Goodyear Tire & Rubber Company, The Williams Companies, Inc., and Tyson Foods, Inc. to gauge further market movements. The Fear & Greed Index's current reading at 39.6 highlights the prevailing caution in the market, indicating lingering fears among investors despite some positive market movements.