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

U.S. stocks settled lower on Tuesday, with the Dow Jones index falling more than 300 points during the session.

Investors are getting impatient over the unresolved U.S.–Iran standoff that has kept oil prices elevated and inflation expectations sticky.

In earnings, Amer Sports Inc. ( AS ) reported better-than-expected first-quarter financial results and raised its FY26 guidance above estimates. The Home Depot Inc. ( HD ) on Tuesday reported upbeat earnings for the first quarter on Tuesday.

On the economic data front, the ADP said US private employers added an average of 42,250 jobs per week during the four weeks ended May 2, compared to 33,000 in the previous period.

Most sectors on the S&P 500 closed on a negative note, with materials, communication services and consumer discretionary stocks recording the biggest losses on Tuesday. However, health care and energy stocks bucked the overall market trend, closing the session higher.

The Dow Jones closed lower by around 322 points to 49,363.88 on Tuesday. The S&P 500 fell 0.67% to 7,353.61, while the Nasdaq Composite dipped 0.84% at 25,870.71 during Tuesday's session.

Investors are awaiting earnings results from NVIDIA Corp. ( NVDA ) , Target Corp. ( TGT ) and Lowe’s Companies Inc. today.

What Is CNN Business Fear & Greed Index?

At a current reading of 60.3, the index remained in the “Greed” zone on Tuesday, versus a prior reading of 61.5.

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.