Fear & Greed Index Moves To 'Extreme Greed' Zone After Dow Jumps Over 200 Points

The CNN Money Fear and Greed index moved to the "Extreme Greed" zone on Tuesday.

U.S. stocks closed higher on Tuesday, with the Dow Jones recording gain for the first time in seven days.

On the economic data front, U.S. durable goods orders rose 1.7% month-over-month in May versus a revised 1.2% growth in April and easily topping market estimates of a 1% drop. The S&P CoreLogic Case-Shiller 20-city home price index dropped 1.7% year-over-year in April, recording the biggest drop since April 2012.

Walgreens Boots Alliance, Inc. WBA shares dropped over 9% on Tuesday after the company lowered its full-year profit forecast and reported downbeat quarterly earnings.

The Dow Jones closed higher by around 212 points to 33,926.74 on Tuesday. The S&P 500 rose 1.15% at 4,378.41, while the Nasdaq Composite surged 1.65% to settle at 13,555.67 during the session.

Investors are awaiting earnings results from General Mills, Inc. GIS, UniFirst Corporation UNF and Micron Technology, Inc. MU today.

At a current reading of 76.0, the index moved to the "Extreme Greed" zone, versus a previous reading of 72.0

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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