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

U.S. stocks settled lower on Tuesday, with the Dow Jones index dipping more than 1% during the session as continued trade war fears rattled investor sentiment.

On Tuesday, President Donald Trump escalated trade tensions by raising tariffs on Canadian steel and aluminum imports to 50%, responding to Ontario’s move to levy a 25% tariff on electricity exports to the U.S.

On the economic data front, job openings in the U.S. showed unexpected resilience, rising by 232,000 to 7.74 million in January from a downwardly revised 7.51 million in December. The reading exceeded market forecasts of 7.63 million, suggesting positive labor market news despite broader economic jitters.

All sectors on the S&P 500 closed on a negative note, with consumer staples, industrials and health care stocks recording biggest losses on Tuesday.

The Dow Jones closed lower by around 478 points to 41,433.48 on Tuesday. The S&P 500 fell 0.76% to 5,572.07, while the Nasdaq Composite dipped 0.18% at 17,436.10 during Tuesday's session.

Investors are awaiting earnings results from Adobe Inc ( ADBE ). , ABM Industries Incorporated ( ABM ) and American Eagle Outfitters, Inc. ( AEO ) today.

At a current reading of 15.4, the index remained in the “Extreme Fear” zone on Tuesday, versus a prior reading of 14.4.

What is CNN Business Fear & Greed Index?

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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