The CNN Money Fear and Greed Index showed an improvement in overall sentiment among US investors.

The Dow Jones posted losses on Tuesday after the release of US inflation data. Consumer prices rose 0.5%m/m in January, the fastest in three months, in line with market expectations. Annual inflation in the US fell to 6.4% in January from 6.5% in December.

On the earnings front The Coca Cola company KO released quarterly in-line earnings while sales beat expectations.

The Dow closed about 157 points lower at 34,089.27 on Tuesday. The S&P 500 fell 0.03% to 4,136.13, while the Nasdaq Composite climbed 0.57% to settle at 11,960.15 during the session.

Investors await earnings results from Cisco Systems, Inc. CSCO,
Analog Devices, Inc. ADI And Biogen Inc. BIIB Today.

With a current reading of 73.0, the index remained in “greed” territory compared to a previous reading of 71.0.

What is the CNN Business Fear & Greed Index?

The Fear & Greed Index is a measure of current market sentiment. It is based on the premise that higher fear puts pressure on stock prices, while higher greed has the opposite effect. The index is calculated based on seven equally weighted indicators. The index ranges from 0 to 100, with 0 representing maximum fear and 100 representing maximum greed.

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