The CNN Money Fear and Greed index showed some easing in the fear level, with the index moving to the “Fear” zone on Friday.

U.S. stocks settled higher on Friday, with the Dow Jones index surging almost 500 points during the session.

Even as the major indices recorded gains on Friday, all three averages fell last week. The Dow dipped around 2.3% to record its third losing week in a row. The S&P 500 declined about 2%, while the Nasdaq Composite fell around 1.8% last week.

On the economic data front, the U.S. personal consumption expenditures price index rose 0.1% month-over-month in November down from 0.2% in each of the prior two months and compared to market estimates of 0.2%. The University of Michigan consumer sentiment rose to 74 in December, recording the highest level since April, versus a reading of 71.8 in November.

Carnival Corporation ( CCL ) reported better-than-expected earnings for its fourth quarter on Friday.

All sectors on the S&P 500 closed on a positive note, with utilities, real estate, and information technology stocks recording the biggest gains on Friday.

The Dow Jones closed higher by around 498 points to 42,840.26 on Friday. The S&P 500 rose 1.09% to 5,930.85, while the Nasdaq Composite surged 1.03% to close at 19,572.60 during Friday's session.

Investors are awaiting earnings results from Limoneira Company ( LMNR ) , Bridgeline Digital, Inc ( BLIN ). , and Anavex Life Sciences Corp ( AVXL ). today.

What is CNN Business Fear & Greed Index?

At a current reading of 28.1, the index moved to the “Fear” zone on Friday, versus a prior reading of 21.9.

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 greediness.

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