Investor Sentiment Falls Further; Fear & Greed Index In 'Greed' Zone

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

U.S. stocks closed lower on Tuesday, with the Nasdaq falling more than 100 points during the session. All three major indices recorded losses last week, ending their five-week winning streaks.

On the economic data front, the Conference Board's Leading Economic Index fell 0.4% for January versus market expectations for a 0.3% decline.

Capital One Financial Corp COF announced its plans to purchase Discover Financial Services DFS, marking a pivotal $35.3 billion all-stock transaction. Walmart Inc. AMT shares gained over 3% on Tuesday after the company reported better-than-expected fourth-quarter financial results.

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

The Dow Jones closed lower by around 64 points to 38,563.80 on Tuesday. The S&P 500 fell 0.60% at 4,975.51, while the Nasdaq Composite fell 0.92% at 15,630.78 during Tuesday’s session.

Investors are awaiting earnings results from Exelon Corporation EXC, Exelon Corporation ADI, Exelon Corporation NVDA and Rivian Automotive, Inc. RIVN today.

At a current reading of 67.3, the index remained in the "Greed" zone on Tuesday, versus a prior reading of 69.2.

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: Beasley Broadcast And 2 Other Stocks Under $3 Insiders Are Buying