Investor Sentiment Declines Further Amid Revived Concerns Over Banks

The CNN Money Fear and Greed index showed further decline in the overall market sentiment on Tuesday.

U.S. stocks closed lower on Tuesday as earnings report from First Republic Bank FRC reignited banking sector concerns. Shares of First Republic Bank dropped over 49% on Tuesday after the company announced a decline in deposits for the first quarter and said it will reduce its workforce by 20-25%.

The SPDR S&P Regional Banking ETF KRE fell over 4%, while SPDR S&P Bank ETF KBE lost over 3% on Tuesday.

United Parcel Service, Inc. UPS shares tumbled 10% after the company reported worse-than-expected Q1 results and issued guidance.

The Dow Jones closed lower by around 345 points to 33,530.83 on Tuesday. The S&P 500 fell 1.58% at 4,071.63, while the Nasdaq Composite fell 1.98% to settle at 11,799.16 during the session.

Investors are awaiting earnings results from The Boeing Company BA, Meta Platforms, Inc. META and General Dynamics Corporation GD today.

At a current reading of 57.0, the index remained in the "Greed" zone, versus a previous reading of 64.0

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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