The CNN Money Fear and Greed index showed slight improvement in overall sentiment among U.S. investors on Tuesday.

PayPal Holdings Inc (NASDAQ:PYPL) shares dropped more than 12% on Tuesday despite reporting better-than-expected quarterly results.

The Dow Jones closed lower by around 57 points to 33,561.81 on Tuesday. The S&P 500 fell 0.46% at 4,119.17, while the Nasdaq Composite fell 0.63% to settle at 12,179.55 during the session.

At a current reading of 61.0, the index remained in the "Greed" zone, versus a previous reading of 60.0

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.

Read Next: Top 5 Financial Stocks That Could Sink Your Portfolio This Quarter