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

U.S. stocks settled mixed on Tuesday, with the S&P 500 recording gains for the second straight session.

NVIDIA Corporation (NASDAQ:NVDA) shares gained 1.5% on Monday. Advanced Micro Devices, Inc. (NASDAQ:AMD) and Microsoft Corporation (NASDAQ:MSFT) also closed higher during the session.

On the economic data front, the NFIB Small Business Optimism Index fell to 91.2 in August, recording the weakest reading in three months, and versus July's reading of 93.7.

Most sectors on the S&P 500 closed on a positive note, with real estate, information technology and consumer discretionary stocks recording the biggest gains on Tuesday. However, energy and financials stocks bucked the overall market trend, closing the session lower.

The Dow Jones closed lower by around 93 points to 40,736.96 on Tuesday. The S&P 500 rose 0.45% to 5,495.52, while the Nasdaq Composite jumped 0.84% at 17,025.88 during Tuesday's session.

Investors are awaiting earnings results from Designer Brands Inc. (NYSE:DBI), Manchester United plc (NYSE:MANU) and Oxford Industries, Inc. (NYSE:OXM) today.

What is CNN Business Fear & Greed Index?

At a current reading of 39.6, the index remained in the "Fear" zone on Tuesday, versus a prior reading of 40.9.

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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