S&P 500 Falls From Record High Following Inflation Report: Investor Sentiment Improves, Fear Index Remains In 'Greed' Zone

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

U.S. stocks settled mixed on Tuesday, with the S&P 500 falling from a record high during the session after a hotter-than-expected April inflation report consolidated worries that the Federal Reserve will not cut interest rates this year.

Headline Consumer Price Index accelerated to 3.8% year-over-year in April from 3.3% prior, the highest reading since March 2023 and above the 3.7% consensus, driven largely by gasoline prices.

President Donald Trump criticized an Iranian counteroffer to end the war, and said the month-long ceasefire is "unbelievably weak".

In earnings, Under Armour Inc (UAA). shares fell almost 17% on Tuesday after the company reported fourth-quarter results that missed Wall Street earnings expectations and warned that Middle East-related supply chain disruptions will continue weighing on margins in fiscal 2027. Shares of Zoominfo Technologies Inc. (GTM) dipped 33% after the company reported first-quarter financial results and issued second-quarter sales guidance below estimates.

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

The Dow Jones closed higher by around 56 points to 49,760.56 on Tuesday. The S&P 500 fell 0.16% to 7,400.96, while the Nasdaq Composite dipped 0.71% at 26,088.20 during Tuesday's session.

Investors are awaiting earnings results from Cisco Systems Inc. (CSCO) , Alibaba Group Holding Ltd. (BABA) and Vishay Intertechnology Inc. (VSH) today.

What Is CNN Business Fear & Greed Index?

At a current reading of 66.6, the index remained in the “Greed” zone on Tuesday, versus a prior reading of 65.4.

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 greediness.

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