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

U.S. stocks settled mixed on Tuesday, with the Nasdaq Composite falling around 250 points during the session. Crude oil prices fell sharply on Tuesday as Israel and Iran halted strikes.

President Donald Trump said on social media that a U.S. helicopter was shot down while conducting a patrol mission over the Strait of Hormuz. He stated that the aircraft had two pilots on board, both of whom are safe, but added that the U.S. "must respond to the attack."

On the economic data front, the U.S. trade deficit shrank to $55.9 billion in April versus a revised $56.6 billion in the previous month, compared to market estimates of $56.1 billion. The ADP said U.S. private employers added an average of 29,000 jobs per week during the four weeks ending May 23.

On the earnings front, Designer Brands Inc. (NYSE:DBI) shares dipped around 21% on Tuesday after the company reported mixed first-quarter financial results. United Natural Foods Inc. (NYSE:UNFI) reported downbeat earnings for the third quarter on Tuesday.

Most sectors on the S&P 500 closed on a positive note, with health care, real estate and materials stocks recording the biggest gains on Tuesday. However, information technology and energy stocks bucked the overall market trend, closing the session lower.

The Dow Jones closed higher by around 86 points to 50,872.11 on Tuesday. The S&P 500 fell 0.26% to 7,386.65, while the Nasdaq Composite dipped 0.97% at 25,678.82 during Tuesday's session.

Investors are awaiting earnings results from Core & Main Inc. (NYSE:CNM), Chewy Inc. (NYSE:CHWY) and Oracle Corp. (NYSE:ORCL) today.

What Is CNN Business Fear & Greed Index?

At a current reading of 33.5, the index remained in the “Fear” zone on Tuesday, versus a prior reading of 39.9.

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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