The CNN Money Fear and Greed Index showed another decline in overall market sentiment, while the index moved to the “Neutral” zone on Tuesday.

U.S. stocks settled lower on Tuesday, with the Nasdaq Composite falling more than 350 points during the session amid concerns of persistent inflation and higher crude oil prices. Treasury yields also hovered near multi-decade highs.

Shares of Western Digital (NASDAQ:WDC) dropped 7% on Tuesday, while SanDisk Corp. (NASDAQ:SNDK) fell 9%.

On the economic data front, U.S. export prices declined 1.3% month-over-month in July, following a revised 0.7% fall in June. U.S. import prices fell by 0.4% month-over-month in July. U.S. industrial production rose by 0.2% in July, following a revised 0.3% gain in June and compared to market estimates of a 0.3% rise. U.S. pending home sales declined by 2.3% month-over-month in July.

On the earnings front, shares of Fabrinet (NYSE:FN) fell around 19% on Tuesday after the company reported fourth-quarter results and issued first-quarter GAAP EPS guidance below estimates.

Most sectors on the S&P 500 closed on a negative note, with information technology, industrials and materials stocks recording the biggest losses on Tuesday. However, energy and health care stocks bucked the overall market trend, closing the session higher.

The Dow Jones closed lower by around 116 points to 53,343.40 on Tuesday. The S&P 500 fell 0.69% to 7,691.76, while the Nasdaq Composite declined 1.33% to 26,289.71 during Tuesday’s session.

Investors are awaiting earnings results from Lowe’s Companies Inc (NYSE:LOW), Target Corp (NYSE:TGT) and TJX Companies Inc (NYSE:TJX) today.

What is CNN Business Fear & Greed Index?

At a current reading of 54.3, the index moved to the “Neutral” zone on Tuesday, versus a prior reading of 58.4.

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 greed.

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