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

U.S. stocks settled higher on Tuesday, with the Dow Jones jumping more than 700 points during the session to snap a four-day losing streak amid renewed optimism surrounding trade talks between the U.S. and the European Union. President Donald Trump announced the extension of the 50% tariffs on Sunday till July 9, which he had initially announced on Friday.

AutoZone Inc. ( AZO ) reported weaker-than-expected third-quarter earnings. Shares of E2open Parent Holdings Inc. ( ETWO ) jumped around 25% after the company announced WiseTech Global will acquire them for $2.1 billion in an all-cash deal.

On the economic data front, the S&P CoreLogic Case-Shiller Home Price Index increased 4.1% year-over-year in March, following a 4.5% gain in February. New orders for manufactured goods dipped by 6.3% to $296.3 billion in April, recording the sharpest decline since January 2024.

All sectors on the S&P 500 closed on a positive note, with information technology, consumer discretionary and communication services stocks recording the biggest gains on Tuesday.

The Dow Jones closed higher by around 741 points to 42,343.65 on Tuesday. The S&P 500 jumped 2.05% to 5,921.54, while the Nasdaq Composite gained 2.47% to 19,199.16 during Tuesday's session.

Investors are awaiting earnings results from DICK’S Sporting Goods Inc. , HP Inc. ( HPQ ) and Nvidia Corp. ( NVDA ) today.

What is CNN Business Fear & Greed Index?

At a current reading of 65, the index remained in the “Greed” zone on Tuesday, versus a prior reading of 63.9.

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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