The CNN Money Fear and Greed index showed a further increase in the overall fear level, while the index remained in the “Extreme Fear” zone on Friday.

U.S. stocks settled lower on Friday, with the Nasdaq Composite falling more than 2% during the session.

The S&P 500 recorded its fifth consecutive weekly decline, falling 2.1% during the week. The Nasdaq dipped 3.2%, while the blue-chip Dow fell 0.9% last week.

Iran reiterated that the Strait of Hormuz remains closed and that ships will face consequences, while also warning of potential strikes on steel plants in the Gulf and Israel — a sharp rejection of the diplomatic 10-day window President Donald Trump announced late Thursday.

Meta Platforms Inc. ( META ) extended its steep three-day rout, falling an additional 4% — bringing its cumulative loss since Wednesday's close to 10% — as markets continued to process mass layoffs and a court ruling labeling its platforms addictive to minors.

On the economic data front, the University of Michigan’s Consumer Sentiment Index dipped to 53.3 in March from the preliminary reading of 55.5 and down from February’s reading of 56.6.

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

The Dow Jones closed lower by around 793 points to 45,166.64 on Friday. The S&P 500 fell 1.67% to 6,368.85, while the Nasdaq Composite dipped 2.15% at 20,948.36 during Friday's session.

Investors are awaiting earnings results from Americas Gold and Silver Corp. ( USAS ) , Phreesia Inc. ( PHR ) and Progress Software Corp. ( PRGS ) today.

What is CNN Business Fear & Greed Index?

At a current reading of 10.2, the index remained in the “Extreme Fear” zone on Friday, versus a prior reading of 14.9.

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.