Dow Dips Over 220 Points Following Weak Jobs Data: Investor Sentiment Declines, Fear & Greed Index Moves To 'Neutral' Zone

The CNN Money Fear and Greed index showed a decline in the overall market sentiment, while the index moved to the “Neutral” zone on Friday.

U.S. stocks settled lower on Friday, with the Dow Jones index falling more than 200 points during the session following a disappointing jobs report.

Nonfarm payrolls grew by a meager 22,000 in August, after July’s weak 79,000 and a June revision showing a 13,000 job loss — the worst since 2020. The three-month hiring pace has collapsed to 29,000, locking in expectations for Fed rate cuts in September, October and December.

ABM Industries Inc. ABM reported mixed fiscal third-quarter 2025 results. Shares of Lululemon Athletica Inc LULU dipped more than 18% on Friday after the company lowered FY25 guidance. Multiple analysts downgraded the stock. Shares of Guidewire Software Inc. GWRE jumped 20% after the company reported fourth-quarter results above analyst estimates.

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

The Dow Jones closed lower by around 220 points to 45,400.86 on Friday. The S&P 500 fell 0.32% to 6,481.50, while the Nasdaq Composite slipped 0.03% to 21,700.39 during Friday’s session.

Investors are awaiting earnings results from Planet Labs PBC PL, Mission Produce Inc AVO and Caseys General Stores Inc CASY today.

What is CNN Business Fear & Greed Index?

At a current reading of 53.1, the index moved to the “Neutral” zone on Friday, versus a prior reading of 55.5.

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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