Dow Falls Over 250 Points; Fear Index Remains in 'Fear' Zone

CNN Money's Fear & Greed Index showed overall market sentiment declining on Friday, with the index remaining in the "Fear" zone.

U.S. stocks closed lower on Friday, with the Dow Jones Industrial Average falling more than 250 points intraday, after a strong August jobs report forced traders to price in the real possibility of a Federal Reserve rate hike this month. President Donald Trump is pressuring for rate cuts, while the rates market is moving in the opposite direction.

The U.S. economy added 162,000 jobs in August, nearly triple the market consensus of 55,000, and a sharp reversal from the upwardly revised gain of 21,000 in July. The unemployment rate held at 4.1%, in line with expectations. Average hourly earnings rose 0.3% month-over-month, matching expectations, with the annual pace rising to 3.1% from 3.2% in July.

On the earnings front, American Outdoor Brands Inc. shares surged about 45% on Friday after the company reported better-than-expected fiscal first-quarter results for 2027. Guidewire Software Inc. shares fell 20% after the company issued first-quarter sales guidance that came in below expectations. Lululemon Athletica Inc. shares plunged more than 17% after the company reported mixed second-quarter financial results and cut its fiscal 2026 guidance, coming in below analyst estimates.

Most S&P 500 sectors closed lower, with healthcare, consumer discretionary, and energy stocks posting the largest declines on Friday. However, the industrials and information technology sectors bucked the trend, closing higher.

The Dow Jones Industrial Average closed down approximately 272 points on Friday, at 53,414.25. The S&P 500 fell 0.38% to 7,718.60, and the Nasdaq Composite Index declined 0.29% during Friday's trading session, to 26,506.99.

Investors are awaiting earnings reports from United Natural Foods Inc., ABM Industries Inc., and Caseys General Stores Inc. due out today.

What is the CNN Business Fear & Greed Index?

The index's latest reading on Friday was 41.9, still in the "Fear" zone, compared to a previous reading of 43.9.

The Fear & Greed Index is a measure of current market sentiment. It is based on the premise that higher fear puts downward 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 represents maximum greed.