The CNN Money Fear and Greed index showed further easing in the overall fear level, while the index remained in the “Fear” zone on Tuesday.

U.S. stocks settled higher on Tuesday, with tech stocks extending their rally into a fourth straight session. The Nasdaq 100 reached a new record high during the session, as optimism builds ahead of key earnings and a widely expected Federal Reserve rate cut.

Investors are also closely watching geopolitical developments as a pivotal meeting between President Donald Trump and Chinese President Xi Jinping is set for Thursday.

The Federal Reserve is expected to lower its benchmark rate by 25 basis points, bringing the fed funds range to 3.75%-4.00%. Traders will tune into Fed Chair Jerome Powell’s remarks for signs of whether another rate cut could follow in December.

PayPal Holdings Inc. ( PYPL ) stock jumped around 4% on Tuesday after it announced an OpenAI collaboration, upbeat third-quarter 2025 results, and the initiation of a dividend plan.

On the economic data front, the FHFA house price index rose by 0.4% month-over-month in August. The S&P CoreLogic Case-Shiller Home Price Index climbed 1.6% year-over-year in August compared to market expectations of a 1.9% gain.

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

The Dow Jones closed higher by around 162 points to 47,706.37 on Tuesday. The S&P 500 rose 0.23% to 6,890.89, while the Nasdaq Composite rose 0.80% to 23,827.49 during Tuesday's session.

Investors are awaiting earnings results from Alphabet Inc. ( GOOG ) , Microsoft Corp. ( MSFT ) and Boeing Co. ( BA ) today.

What is CNN Business Fear & Greed Index?

At a current reading of 40.6, the index remained in the “Fear” zone on Tuesday, versus a prior reading of 37.7.

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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