Nasdaq Jumps 1% as Amazon Shares Surge: Investor Sentiment Improves, But Greed Index Remains in 'Fear' Zone
Key takeaways
- The Nasdaq's 1% gain on Friday was led by Amazon's 15% surge, but the CNN Money Fear and Greed index remains in the 'Fear' zone, indicating caution among investors.
- Nasdaq Composite: +1%
- Amazon shares: +15%
- Dow Jones: +277 points
What happened
The Nasdaq Composite jumped 1% on Friday, led by a 15% surge in Amazon shares after the company reported better-than-expected second-quarter results.
Why it matters
The improvement in market sentiment, as measured by the CNN Money Fear and Greed index, is a positive sign for investors. However, the index remains in the 'Fear' zone, indicating that investors are still cautious. The index's reading of 42.5 is a 1.8-point improvement from the previous day's reading of 40.7.
Short-term and longer-term
Short-term. The Nasdaq's 1% gain on Friday was a broad-based move, led by communication services and consumer discretionary stocks.
Longer-term. Over the next few months, ask whether this changed growth, prices, or the path of interest rates.