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

U.S. stocks settled mixed on Tuesday, with the Dow Jones index gaining more than 500 points during the session, driven by strong earnings reports and lower oil prices.

The Nasdaq, however, settled lower as the AI-driven sell-off deepened on mounting concerns over rising competition from China.

On the earnings front, The Sherwin-Williams Co. (NYSE:SHW) shares gained around 8% following better-than-expected second-quarter results. The Coca-Cola Co. (NYSE:KO) shares gained 5% after the company posted upbeat quarterly results and raised its full-year outlook.

On the economic data front, the U.S. goods trade deficit shrank to $101.5 billion in June versus a 14-month high of $105.9 billion in the previous month. U.S. wholesale inventories increased 0.3% month-over-month to $945.9 billion in June, in-line with the revised 0.3% gain in May and higher than market estimates of a 0.2% gain.

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

The Dow Jones closed higher by around 537 points to 52,747.32 on Tuesday. The S&P 500 rose 0.21% to 7,428.78, while the Nasdaq Composite declined 0.22% to 24,876.91 during Tuesday’s session.

Investors are awaiting earnings results from Procter & Gamble Co. (NYSE:PG), Microsoft Corp. (NASDAQ:MSFT) and General Dynamics Corp. (NYSE:GD) today.

What is CNN Business Fear & Greed Index?

At a current reading of 38.6, the index remained in the “Fear” zone on Tuesday, versus a prior reading of 37.6.

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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