The CNN Money Fear and Greed index showed a decline in the overall market sentiment, while the index remained in the "Greed" zone on Friday.

U.S. stocks settled higher on Friday, with the Dow Jones index settling at a record high during the session. The US Federal Reserve, on Wednesday, slashed interest rates by 50 basis points Wednesday at its September Federal Open Market Committee meeting, lowering the federal funds rate to a range of 4.75% to 5%.

All three major indices recorded weekly gains, with the S&P 500 gaining around 1.4% and adding more than 19% in 2024. The Dow gained around 1.6% last week, while the tech-heavy Nasdaq jumped around 1.5% during the week.

FedEx Corporation (NYSE:FDX) shares dipped over 15% on Monday after the company reported worse-than-expected first-quarter financial results and cut FY25 guidance.

Most sectors on the S&P 500 closed on a negative note, with industrials, materials and information technology stocks recording the biggest losses on Friday. However, utilities and communication services stocks bucked the overall market trend, closing the session higher.

The Dow Jones closed higher by around 38 points to 42,063.36 on Friday. The S&P 500 fell 0.19% to 5,702.55, while the Nasdaq Composite dipped 0.36% to 17,948.32 during Friday's session.

Investors are awaiting earnings results from AAR Corp. (NYSE:AIR) and Red Cat Holdings, Inc. (NASDAQ:RCAT) today.

What is CNN Business Fear & Greed Index?

At a current reading of 62.9, the index remained in the "Greed" zone on Friday, versus a prior reading of 65.1.

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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