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

U.S. stocks settled higher on Tuesday, with the Nasdaq Composite gaining more than 1% during the session amid gains in chipmakers.

Micron Technology Inc. (NASDAQ:MU) shares surged more than 12% as investors kept their focus on corporate earnings and looked past a 10th straight day of U.S.-Iran hostilities.

On the earnings front, 3M (NYSE:MMM) shares jumped over 7% after the company reported upbeat second-quarter earnings. Also, General Motors (NYSE:GM) reported better-than-expected results for the second quarter.

On the economic data front, the U.S. Redbook Index rose by 7.8% year-over-year in the week ending July 18.

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

The Dow Jones closed higher by around 385 points to 52,224.64 on Tuesday. The S&P 500 jumped 0.89% to 7,509.20, while the Nasdaq Composite jumped 1.29% at 25,837.21 during Tuesday’s session.

Investors are awaiting earnings results from Tesla Inc. (NASDAQ:TSLA), AT&T Inc. (NYSE:T) and GE Vernova Inc. (NYSE:GEV) today.

What Is CNN Business Fear & Greed Index?

At a current reading of 41.1, the index remained in the “Fear” zone on Tuesday, versus a prior reading of 37.9.

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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