Fear & Greed Index Remains In 'Greed' Zone Following Earnings Reports; Dow Jumps Over 100 Points

The CNN Money Fear and Greed index showed a slight improvement in the overall market sentiment, while the index remained in the "Greed" zone on Tuesday.

U.S. stocks closed higher on Tuesday, as investors assessed the latest batch of earnings results.

Palantir Technologies Inc. PLTR shares jumped over 30% on Tuesday after the company reported better-than-expected fourth-quarter sales results and issued guidance. Spotify Technology S.A. SPOT shares rose around 3.9% after the company reported a 28% increase in ad-supported MAUs and a 15% increase in premium subscribers for the fourth quarter.

Willis Towers Watson Public Limited Company WTW reported better-than-expected fourth-quarter earnings.

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

The Dow Jones closed higher by around 141 points to 38,521.36 on Tuesday. The S&P 500 rose 0.23% at 4,954.23, while the Nasdaq Composite rose 0.07% at 15,609.00 during Tuesday’s session.

Investors are awaiting earnings results from Yum! Brands, Inc. YUM, The Walt Disney Company DIS, Uber Technologies, Inc. UBER and McKesson Corporation MCK today.

At a current reading of 73.3, the index remained in the "Greed" zone on Monday, versus a prior reading of 72.7.

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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