Investor Optimism Improves Ahead Of Fed's Decision

The CNN Money Fear and Greed index showed some improvement in overall sentiment among US investors.

US stocks closed higher on Tuesday ahead of the much-awaited policy decision from the Federal Reserve.

McDonald's Corp MCD shares fell 1.3% on Tuesday after the company reported fourth-quarter financial results. United Parcel Service, Inc. UPS shares gained 4.7% after the company reported better-than-expected Q4 earnings, raised its dividend and announced a $5 billion repurchase program.

The Dow closed higher by around 369 points to 34,086.04 on Tuesday. The S&P 500 gained 1.46% to 4,076.60, while the Nasdaq Composite jumped 1.67% to settle at 11,584.55 in the session.

Investors are awaiting earnings results from Humana Inc. HUM, Meta Platforms, Inc. META and Thermo Fisher Scientific Inc. TMO today.

At a current reading of 71.0, the index remained in the "Greed" zone, compared to a previous reading of 67.0.

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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