The CNN Money Fear and Greed index showed improvement in the overall market sentiment, while the index moved to the “Neutral” zone on Tuesday.

U.S. stocks settled higher on Tuesday, with the Nasdaq Composite surging around 2% during the session as investors cheered fresh signs of progress in U.S.-Iran negotiations. President Donald Trump said that Iran talks "could be happening over the next two days" in Pakistan.

In earnings, Wells Fargo & Co. ( WFC ) reported worse-than-expected first-quarter financial results. Citigroup Inc. ( C/PN ) reported better-than-expected earnings for the first quarter on Tuesday.

On the economic data front, producer inflation came in sharply below expectations in March, cooling inflationary concerns. The NFIB Small Business Optimism Index declined to 95.8 points in March, recording the lowest reading since April 2025, down from 98.8 in the previous month and missing market expectations of 98.6.

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

The Dow Jones closed higher by around 318 points to 48,535.99 on Tuesday. The S&P 500 surged 1.18% to 6,967.38, while the Nasdaq Composite jumped 1.96% at 23,639.08 during Tuesday's session.

Investors are awaiting earnings results from Bank of America Corp. ( BAC ) , Morgan Stanley ( MS ) and PNC Financial Services Group Inc. ( PNC ) today.

What Is CNN Business Fear & Greed Index?

At a current reading of 46.9, the index moved to the “Neutral” zone on Tuesday, versus a prior reading of 42.7.

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.