Nasdaq Dips Over 100 Points Amid Iran Ceasefire Jitters: Investor Sentiment Declines, But Fear Index Remains In 'Greed' Zone

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

U.S. stocks settled lower on Tuesday, with the Nasdaq Composite falling more than 100 points during the session amid a fresh surge in crude oil prices.

Pakistan's information minister said a formal response from Iran confirming whether it will send a delegation to the Islamabad peace talks was still awaited as of midday, leaving traders pricing an uneasy middle ground between a potential diplomatic breakthrough and a re-escalation in the Strait of Hormuz.

In earnings, GE Aerospace (NYSE:GE) posted better-than-expected earnings for the first quarter on Tuesday. UnitedHealth Group Inc. (NYSE:UNH) shares gained 7% on Tuesday after the company reported better-than-expected first-quarter financial results and issued FY26 EPS guidance above estimates.

On the economic data front, U.S. retail sales increased by 1.7% month-over-month in March, following a revised 0.7% growth in February and topping market estimates of 1.4%.

Most sectors on the S&P 500 closed on a negative note, with real estate, utilities and industrials stocks recording the biggest losses on Tuesday. However, energy stocks bucked the overall market trend, closing the session higher.

The Dow Jones closed lower by around 293 points to 49,149.38 on Tuesday. The S&P 500 fell 0.63% to 7,064.01, while the Nasdaq Composite fell 0.59% at 24,259.96 during Tuesday's session.

Investors are awaiting earnings results from Tesla Inc. (NASDAQ:TSLA), AT&T Inc. (NYSE:T) and Boeing Co. (NYSE:BA) today.

What Is CNN Business Fear & Greed Index?

At a current reading of 67.5, the index remained in the “Greed” zone on Tuesday, versus a prior reading of 70.9.

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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