Dow Tumbles Over 650 Points As Trade War Escalates; Fear & Greed Index Remains In 'Extreme Fear' Zone

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

U.S. stocks settled lower on Tuesday, with the Dow Jones index dipping more than 650 points during the session as President Donald Trump‘s tariffs on key trade partners came into effect, prompting retaliatory measures and intensifying global trade tensions.

Shares of Okta, Inc. OKTA jumped more than 24% on Tuesday after the company reported better-than-expected financial results.

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

The Dow Jones closed lower by around 670 points to 42,520.99 on Tuesday. The S&P 500 fell 1.22% to 5,778.15, while the Nasdaq Composite dipped 0.35% at 18,285.16 during Tuesday's session.

Investors are awaiting earnings results from Foot Locker, Inc. FL, The Campbell’s Company CPB and Abercrombie & Fitch Co. ANF today.

At a current reading of 19.7, the index remained in the “Extreme Fear” zone on Tuesday, versus a prior reading of 19.8.

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.

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