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

U.S. stocks settled higher on Friday, with the Dow Jones index gaining more than 300 points during the session.

All three major indices also recorded their first weekly gain of 2025. The Dow jumped 3.7%, while the S&P 500 added 2.9% last week. The Nasdaq, meanwhile, surged 2.5% during the week to notch its strongest weekly performance since December.

Big tech shares recorded gains on Friday, with shares of Tesla Inc. (NASDAQ:TSLA) surging 3% and NVIDIA Corp. (NASDAQ:NVDA) adding over 3% during the session.

Fastenal C.o (NASDAQ:FAST) reported weaker-than-expected fourth-quarter earnings. J B Hunt Transport Services Inc. (NASDAQ:JBHT) shares fell around 7% on Friday after the company reported fourth-quarter EPS below estimates.

On the economic data front, U.S. industrial production rose by 0.9% in December, topping market estimates of a 0.3% increase. Housing starts rose by 15.8% from the previous month to an annualized rate of 1.499 million units in December. Building permits declined by 0.7% to an annualized rate of 1.483 million in December.

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

The Dow Jones closed higher by around 335 points to 43,487.83 on Friday. The S&P 500 rose 1% to 5,996.66, while the Nasdaq Composite climbed 1.51% at 19,630.20 during Friday's session.

Investors are awaiting earnings results from 3M Co. (NYSE:MMM), D.R. Horton Inc. (NYSE:DHI), and Netflix Inc. (NASDAQ:NFLX) today.

What is CNN Business Fear & Greed Index?

At a current reading of 37.7, the index remained in the “Fear” zone on Friday, versus a prior reading of 34.1.

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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