The CNN Money Fear and Greed index showed some improvement in the overall market sentiment, while the index remained in the "Extreme Fear" zone on Tuesday.
U.S. stocks settled higher on Tuesday, recovering some losses from the prior three sessions.
On the economic data front, the trade deficit in the U.S. shrank to $73.1 billion in June versus the revised gap of $75 billion in the previous month. However, analysts were expecting a gap of $72.5 billion. Exports increased by 1.5% to $265.9 billion in June.
Various megacap tech shares recovered on Tuesday following a sharp decline in the prior session. NVIDIA Corporation (NASDAQ:NVDA) shares gained 3.8%, while Meta Platforms, Inc. (NASDAQ:META) shares added 3.9% during the session.
Caterpillar Inc. (NYSE:CAT) reported better-than-expected second-quarter financial results on Tuesday. Yum! Brands, Inc. (NYSE:YUM) reported stronger-than-expected quarterly earnings on Tuesday.
All sectors on the S&P 500 closed on a positive note, with real estate, communication services, and financials stocks recording the biggest gains on Tuesday.
The Dow Jones closed higher by around 294 points to 38,997.66 on Tuesday. The S&P 500 surged 1.04% at 5,240.03, while the Nasdaq Composite climbed 1.03% at 16,366.85 during Monday's session.
Investors are awaiting earnings results from McKesson Corporation (NYSE:MCK), The Walt Disney Company (NYSE:DIS), and CVS Health Corporation (NYSE:CVS) today.
What is CNN Business Fear & Greed Index?
At a current reading of 20.9, the index remained in the "Extreme Fear" zone on Tuesday, versus a prior reading of 16.4.
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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