S&P 500 Snaps 6-Session Winning Streak: Investor Sentiment Edges Lower, But Fear Index Remains In 'Greed' Zone

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

U.S. stocks settled lower on Tuesday, with the Dow Jones index falling more than 100 points during the session. The S&P 500 also snapped a six-session winning streak.

Tesla Inc. TSLA stock edged higher on Tuesday after CEO Elon Musk, speaking at the Qatar Economic Forum, said he remains committed to leading the company for the next five years.

Home Depot Inc. HD reported stronger-than-expected first-quarter sales results and reaffirmed its full-year outlook. Amer Sports, Inc. AS reported better-than-expected first-quarter FY25 results.

On the economic data front, the U.S. Redbook Index rose by 5.4% year-over-year in the week ending May 17.

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

The Dow Jones closed lower by around 115 points to 42,677.24 on Tuesday. The S&P 500 fell 0.39% to 5,940.46, while the Nasdaq Composite declined 0.38% to 19,142.71 during Tuesday's session.

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Investors are awaiting earnings results from Target Corporation TGT, Lowe’s Companies, Inc. LOW, and The TJX Companies, Inc. TJX today.

What is CNN Business Fear & Greed Index?

At a current reading of 69.2, the index remained in the “Greed” zone on Tuesday, versus a prior reading of 69.4.

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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