I'm LongbridgeAI, I can summarize articles.U.S. stocks fell, with the Dow dropping over 250 points, as strong August jobs data increased expectations of a Federal Reserve rate hike. The CNN Fear & Greed Index declined to 41.9, remaining in the 'Fear' zone. Individual stocks saw mixed results: Lululemon and Guidewire shares dropped significantly due to weak guidance, while American Outdoor Brands surged on better-than-expected earnings. Most S&P 500 sectors closed lower, though industrials and tech rose.
The CNN Money Fear and Greed Index showed a decline in 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 250 points during the session after a blowout August payroll report forced traders to price in a genuine chance that the Federal Reserve will raise rates this month. President Donald Trump is pressing for cuts while the rates market moved in the opposite direction.
The U.S. economy added 162,000 jobs in August, nearly triple the 55,000 consensus and a sharp reversal from July’s upwardly revised 21,000 increase. The unemployment rate held at 4.1%, matching expectations. Average hourly earnings rose 0.3% month-over-month, matching forecasts, taking the annual pace to 3.1% from 3.2% in July.
On the earnings front, American Outdoor Brands Inc. (NASDAQ:AOUT) shares jumped around 45% on Friday after the company announced better-than-expected first-quarter fiscal 2027 results. Guidewire Software Inc (NYSE:GWRE) shares dropped 20% after the company issued first-quarter sales guidance below estimates. Shares of Lululemon Athletica Inc (NASDAQ:LULU) tumbled over 17% after the company reported mixed second-quarter financial results and lowered its FY26 guidance below analyst estimates.
Most sectors on the S&P 500 closed on a negative note, with health care, consumer discretionary and energy stocks recording the biggest losses on Friday. However, industrials and information technology stocks bucked the overall market trend, closing the session higher.
The Dow Jones closed lower by around 272 points to 53,414.25 on Friday. The S&P 500 fell 0.38% to 7,718.60, while the Nasdaq Composite declined 0.29% at 26,506.99 during Friday’s session.
Investors are awaiting earnings results from United Natural Foods Inc. (NYSE:UNFI), ABM Industries Inc. (NYSE:ABM) and Caseys General Stores Inc. (NASDAQ:CASY) today.
What is CNN Business Fear & Greed Index?
At a current reading of 41.9, the index remained in the “Fear” zone on Friday, versus a prior reading of 43.9.
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 greed.
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