Tuesday's trading session saw a downturn in U.S. stock markets as both the S&P 500 and Nasdaq broke their five-session winning streaks. Notably, the CNN Money Fear and Greed Index remained in the 'Greed' zone, reflecting an optimistic market sentiment despite the decline. Tesla Inc.'s shares, which have seen a significant 31% rise since Election Day, experienced a pullback, declining by about 6.2%. Similarly, Trump Media & Technology Group Corp. saw its shares drop by approximately 9% during the session.

Amidst these declines, Home Depot Inc. posted a positive surprise, with its third-quarter earnings exceeding expectations. The company also raised its full-year outlook for 2024, projecting a strong performance moving forward. On the economic front, U.S. consumer inflation expectations for the coming year eased slightly to 2.9% in October, down from the consistent rate of 3% observed over the previous four months. Additionally, the RealClearMarkets/TIPP Economic Optimism Index saw a significant jump of 13.4% in November, reaching 53.2—the highest level in over three years.

Sector-wise on the S&P 500, most sectors ended the day negatively, with materials, healthcare, and real estate stocks taking the brunt of losses. However, a few sectors bucked the trend, notably information technology and communication services, which managed to close the day in the green. The Dow Jones Industrial Average closed with a loss of approximately 382 points, ending at 43,910.98. The S&P 500 index shed 0.29% to finish at 5,983.99, while the Nasdaq Composite saw a minor drop of 0.09%, closing at 19,281.40.

Investors were also focused on upcoming earnings reports from companies such as CyberArk Software Ltd., Cisco Systems Inc., and Beazer Homes USA Inc., expecting insights that could influence market trajectories. The CNN Business Fear and Greed Index, a tool designed to gauge market sentiments, stood at 68.7, up slightly from the previous 68.6. The index operates on a scale from 0 to 100, where lower numbers indicate fear and higher numbers represent greed, reflecting current levels of investor confidence or concern. In such contexts, heightened fear can lead to pressure on stock prices, whereas increased greed tends to drive prices up.

To conclude, while a degree of uncertainty lingers with upcoming inflation data and earnings reports, certain sectors and companies are showing resilience, hinting at opportunities for strategic investments. Investors remain keen to navigate these trends, considering indicators like the Fear and Greed Index to inform their decisions.