The CNN Money Fear and Greed index showed some decline in the overall market sentiment, while the index remained in the “Greed” zone on Tuesday.

U.S. stocks settled mostly lower on Tuesday, with the Dow Jones index falling more than 100 points during the session ahead of Fed policy meeting.

The Federal Reserve is expected to cut rates on Wednesday at the Federal Open Market Committee meeting for September. This would mark the first cut since December 2024 and would come with stock market indexes at all-time highs.

On the economic front, the NAHB/Wells Fargo Housing Market Index came in steady at 32 in September, the same as in the previous month. U.S. industrial production rose 0.1% in August, following a 0.4% decline in the previous month and topping market expectations for a 0.1% decline.

U.S. retail sales rose 0.6% month-over-month in August, the same as the revised 0.6% gain in July and topping market expectations of a 0.2% gain.

Dave & Buster’s Entertainment Inc. posted weaker-than-expected results for the second quarter.

Most sectors on the S&P 500 closed on a negative note, with utilities, real estate and information technology stocks recording the biggest losses on Tuesday. However, consumer discretionary and energy stocks bucked the overall market trend, closing the session higher.

The Dow Jones closed lower by around 125 points to 45,757.90 on Tuesday. The S&P 500 fell 0.13% to 6,606.76, while the Nasdaq Composite declined 0.07% at 22,333.96 during Tuesday's session.

Investors are awaiting earnings results from General Mills Inc. ( GIS ) , Manchester United PLC ( MANU ) and Cracker Barrel Old Country Store Inc. ( CBRL ) today.

What is CNN Business Fear & Greed Index?

At a current reading of 57.5, the index remained in the “Greed” zone on Tuesday, versus a prior reading of 58.3.

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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