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

U.S. stocks settled mixed on Tuesday, with the Nasdaq Composite jumping around 300 points during the session. The U.S. and China agreed to a 90-day truce by slashing triple-digit tariffs effective May 14.

The Consumer Price Index showed signs of cooling in April, as both headline and core readings eased or met expectations, easing concerns that Trump’s proposed trade tariffs would trigger a surge in inflation.

Shares of NVIDIA Corporation ( NVDA ) jumped around 5.6% on Tuesday as the company announced a strategic partnership with HUMAIN aimed at establishing Saudi Arabia as a leader in artificial intelligence (AI) and GPU cloud computing. UnitedHealth Group Incorporated ( UNH ) shares tumbled around 18% after the company announced it suspended its FY25 guidance and announced the appointment of Stephen Hemsley as CEO.

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

The Dow Jones closed lower by around 270 points to 42,140.43 on Tuesday. The S&P 500 surged 0.72% to 5,886.55, while the Nasdaq Composite jumped 1.61% at 19,010.08 during Tuesday's session.

Investors are awaiting earnings results from Sony Group Corporation ( SONY ) , Cisco Systems, Inc ( CSCO ). and MakeMyTrip Limited ( MMYT ) today.

At a current reading of 68.7, the index remained in the “Greed” zone on Tuesday, versus a prior reading of 66.5.

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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