The CNN Money Fear and Greed index showed a slight increase in the overall market sentiment, but the index remained in the "Greed" zone on Tuesday.

U.S. stocks closed higher on Tuesday as the Federal Reserve started its two-day policy meeting. The US central bank is scheduled to announce its policy decision on Tuesday.

Caleres Inc ( CAL ) reported upbeat fourth-quarter results. Comtech Telecommunications Corp. ( CMTL ) shares dipped over 25% on Tuesday following weak quarterly results.

On the economic data front, housing starts in the U.S. surged 10.7% month-over-month to an annualized rate of 1.521 million in February, following a 12.3% decline in January. U.S. building permits rose by 1.9% to an annual rate of 1.518 million in February, versus market estimates of 1.495 million.

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

The Dow Jones closed higher by over 320 points to 39,110.76 on Tuesday. The S&P 500 rose 0.56% at 5,178.51, while the Nasdaq Composite climbed 0.39% at 16,166.79 during Tuesday's session.

Investors are awaiting earnings results from Signet Jewelers Limited ( SIG ) , General Mills, Inc. ( GIS ) , and Micron Technology, Inc. ( MU ) today.

At a current reading of 70.5, the index remained in the "Greed" zone on Tuesday, versus a prior reading of 69.8.

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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