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

U.S. stocks recorded gains on Tuesday, with the S&P 500 gaining to a new record level during the session.

On the economic data front, U.S. retail sales rose 0.1% month-over-month in May compared to a revised 0.2% decline in April and missing market expectations of a 0.2% gain. U.S. industrial production increased 0.9% month-over-month in May, topping market estimates of a 0.3% gain.

Nvidia Corp. (NASDAQ:NVDA) shares gained 3.5% on Tuesday to surpass Microsoft (NASDAQ:MSFT), claiming the title of most valuable public company in the world. America's Car-Mart Inc (NASDAQ:CRMT) shares fell over 6% during Tuesday's session after the company reported worse-than-expected fourth-quarter earnings.

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

The Dow Jones closed higher by around 57 points to 38,834.86 on Tuesday. The S&P 500 gained 0.25% at 5,487.03, while the Nasdaq Composite climbed 0.03% at 17,862.23 during Friday's session.

Investors are awaiting earnings results from Accenture Plc (NYSE:ACN), Jabil Inc (NYSE:JBL), and Darden Restaurants, Inc. (NYSE:DRI) today.

What Is The CNN Business Fear & Greed Index?

At a current reading of 42.3, the index remained in the "Fear" zone on Tuesday, versus a prior reading of 41.3.

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.