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 Dow Jones index surging to a record high during the session amid declining crude oil prices. However, the Nasdaq dipped over 1% as chip stocks moved lower.

The Federal Reserve will announce its policy decision today. Futures price a roughly 97% chance the Fed holds its benchmark rate at 3.5%-3.75%, but markets still assign about 70% odds to at least one hike before year-end, leaving Warsh's debut press conference as the session's gravitational center.

On the economic data front, the New York Fed’s services business activity index declined by 4 points to -10.1 in June. U.S. export prices increased by 1.3% month-over-month in May, while import prices surged 1.9% in May.

Most sectors on the S&P 500 closed on a positive note, with financial, utilities and industrials stocks recording the biggest gains on Tuesday. However, energy and information technology stocks closed the session lower.

The Dow Jones closed higher by around 329 points to 51,999.67 on Tuesday. The S&P 500 fell 0.57% to 7,511.35, while the Nasdaq Composite dipped 1.15% at 26,376.34 during Tuesday's session.

Investors are awaiting earnings results from CarMax Inc. (NYSE:KMX), Jabil Inc. (NYSE:JBL) and Safe Bulkers Inc. (NYSE:SB) today.

What Is CNN Business Fear & Greed Index?

At a current reading of 39.3, the index remained in the “Fear” zone on Tuesday, versus a prior reading of 41.6.

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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