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

U.S. stocks settled higher on Friday, with the Dow Jones gaining more than 400 points during the session. All three major indices recorded gains last week, with the Nasdaq gaining 0.6% and the Dow adding 0.9%. The S&P 500, meanwhile, gained about 1.2% during the week.

Late Thursday on Truth Social, President Donald Trump said, "We will not be attacking Iran at any time before the midterm elections," adding that the U.S. is "having productive discussions" with Tehran.

On the economic data front, the University of Michigan’s consumer sentiment index fell to 46.3 in October, recording its lowest level since May and down from market expectations of 47.6.

Shares of Humana Inc. (NYSE:HUM) rose around 12% after the company said Friday that its 2027 Medicare Advantage Star Ratings improved significantly, with 95% of members enrolled in plans earning at least four stars from the Centers for Medicare and Medicaid Services (CMS).

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

The Dow Jones closed higher by around 423 points to 51,654.95 on Friday. The S&P 500 rose 0.59% to 7,811.54, while the Nasdaq Composite climbed 0.64% at 27,366.17 during Friday’s session.

What is CNN Business Fear & Greed Index?

At a current reading of 45, the index moved to the “Neutral” zone on Friday, versus a prior reading of 40.

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 equally weighted indicators. The index ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greediness.

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