The CNN Money Fear and Greed index showed some improvement in the overall market sentiment, with the index remaining in the "Greed" zone on Tuesday.
U.S. stocks closed higher on Tuesday, with the Dow Jones index surging to an all-time high and settling at a record level. Traders now see a 100% chance that the US Federal Reserve will cut interest rates in September.
On the economic data front, U.S. retail sales came in flat month-over-month for June compared to a revised 0.3% gain in the previous period. Import prices came in unchanged from the prior month in June, while export prices in the U.S. declined 0.5% month-over-month in June.
UnitedHealth Group Incorporated (NYSE:UNH) shares gained 6.5% on Tuesday following a second-quarter earnings beat. Bank of America Corp (NYSE:BAC) shares climbed 5.4% after the company reported better-than-expected second-quarter results.
Most sectors on the S&P 500 closed on a positive note, with materials, consumer discretionary and industrial stocks recording the biggest gains on Tuesday. However, communication services and information technology stocks bucked the overall market trend, closing the session lower.
The Dow Jones closed higher by around 743 points to 40,954.48 on Tuesday. The S&P 500 rose 0.64% at 5,667.20, while the Nasdaq Composite climbed 0.20% at 18,509.34 during Tuesday's session.
Investors are awaiting earnings results from Johnson & Johnson (NYSE:JNJ), Spirit Airlines Inc. (NYSE:SAVE) and Synchrony Financial (NYSE:SYF) today.
What is CNN Business Fear & Greed Index?
At a current reading of 63.7, the index remained in the "Greed" zone on Tuesday, versus a prior reading of 63.3.
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.
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