Dow Jumps Over 500 Points As Trump Takes Office: Investor Sentiment Improves, But Greed Index Remains In 'Fear' Zone

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

U.S. stocks settled higher on Tuesday, with the Dow Jones index gaining more than 500 points during the session as investors bet on more domestic-friendly policies following Donald Trump’s inauguration on Jan. 20 as the 47th U.S. President.

All three major indices also recorded their first weekly gain of 2025. The Dow jumped 3.7%, while the S&P 500 added 2.9% last week. The Nasdaq, meanwhile, surged 2.5% during the week to notch its strongest weekly performance since December.

D.R. Horton Inc. DHI reported better-than-expected first-quarter results. 3M Company MMM reported upbeat fourth-quarter 2024 results and initiated 2025 guidance.

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

The Dow Jones closed higher by around 538 points to 44,025.81 on Tuesday. The S&P 500 rose 0.88% to 6,049.24, while the Nasdaq Composite climbed 0.64% at 19,756.78 during Tuesday's session.

Investors are awaiting earnings results from Abbott Laboratories ABT, The Procter & Gamble Company PG, and Johnson & Johnson JNJ today.

What is CNN Business Fear & Greed Index?

At a current reading of 40.8, 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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