Dow Surges 300 Points Amid Trade Deal Hopes: Greed Index Remains In 'Fear' Zone

The CNN Money Fear and Greed index showed further easing in the overall fear level, while the index remained in the “Fear” zone on Tuesday.

U.S. stocks settled higher on Tuesday, with the Dow Jones index gaining 300 points during the session on indications that the United States was nearing a deal with a key trading partner.

Shares of Pfizer Inc. (NYSE:PFE) gained over 3% on Tuesday after the company reported better-than-expected earnings for its first quarter. The Coca-Cola Company (NYSE:KO) reported better-than-expected earnings for its first quarter on Tuesday.

On the economic data front, the number of job openings in the U.S. declined by 288,000 to 7.192 million in March, compared to market estimates of 7.48 million. U.S. wholesale inventories climbed 0.5% month-over-month to $908 billion during March. The U.S. trade deficit in goods increased to $162 billion in March compared to market estimates of a $146 billion gap.

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

The Dow Jones closed higher by around 300 points to 40,527.62 on Tuesday. The S&P 500 gained 0.58% to 5,560.83, while the Nasdaq Composite rose 0.55% at 17,461.32 during Tuesday's session.

Investors are awaiting earnings results from Caterpillar Inc. (NYSE:CAT), Microsoft Corporation (NASDAQ:MSFT) and Meta Platforms, Inc. (NASDAQ:META) today.

At a current reading of 37.8, the index remained in the “Fear” zone on Tuesday, versus a prior reading of 36.3.

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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