Indexes end with strong gains, rebounding from global market sell-off
Uber jumps after Q2 revenue beat
Caterpillar rises after Q2 profit beat
Indexes: Dow up 0.8%, S&P 500 up 1%, Nasdaq up 1%
Updates to 4:30 p.m. ET
By Caroline Valetkevitch
NEW YORK, Aug 6 (Reuters) - The S&P 500 and Nasdaq ended 1% higher on Tuesday as investorsjumped back into the market a day after a dramatic sell-off, with recent comments by Federal Reserve officials easing U.S. recession worries.
The Dow rose as well, but all three major stock indexes pared gains heading into the close and ended well off their highs of the day.
U.S. central bank policymakers have pushed back against the idea that weaker-than-expected July jobs data means the economy is headed for a recession, but they have also warned that the Fed will need to cut interest rates to avoid such an outcome.
Stocks had sold off as weak economic data raised worries of a U.S. recession.
Traders are pricing in a 75% chance the Fed will cut rates by 50 basis points at its next policy meeting in September, and a 25% chance of a 25 basis point reduction, the CME Group's FedWatch Tool showed.
All major S&P 500 sectors ended higher, with real estate .SPLRCR and financials .SPSY up the most. Technology megacap NvidiaNVDA.O rose nearly 4%, giving the S&P 500 and Nasdaq their biggest boosts.
"The market had just gotten top heavy, but it did reprice a decent amount, particularly the Nasdaq, and people are coming back to the idea that with lower rates it should provide a support for stocks," said Rick Meckler, partner at Cherry Lane Investments, a family investment office in New Vernon, New Jersey.
The Dow Jones Industrial Average .DJI rose 294.39 points, or 0.76%, to 38,997.66, the S&P 500 .SPX gained 53.7 points, or 1.04%, at 5,240.03 and the Nasdaq Composite .IXIC advanced 166.77 points, or 1.03%, to 16,366.86.
The Nasdaq Composite is still up 9% so far in 2024, driven earlier in the year by strong earnings and optimism over artificial intelligence.
"While (recent) earnings were good, in many cases they weren't great," Meckler said.
Valuations have been stretched. The S&P 500 was last trading at 20 times forward 12-month earnings estimates, compared with its long-term average of 15.7, LSEG data showed.
Recent market concernswere exacerbated asinvestors wounddown yen-funded trades, used to finance acquisition of stocks for years, after a surprise Bank of Japan rate hike last week.
The next big Fed event is Chair Jerome Powell's speech at the Jackson Hole, Wyoming, on Aug. 22-24.
UberUBER.N shares jumped 11%after the ride-sharing and food delivery providerbeat Wall Street estimates for second-quarter revenue and core profit, helped by steady demand for its services.
Caterpillar CAT.N gained 3% afterbeating analysts' estimates for second-quarter profit, as higher prices on its larger excavators and other equipment countered moderating demand in North America.
Volume on U.S. exchanges was 13.52 billion shares, compared with the 12.48 billion average for the full session over the last 20 trading days.
Advancing issues outnumbered declining ones on the NYSE by a 2.59-to-1 ratio; on Nasdaq, a 1.93-to-1 ratio favored advancers.
The S&P 500 posted 12 new 52-week highs and seven new lows; the Nasdaq Composite recorded 31 new highs and 144 new lows.
Additional reporting by Shubham Batra and Shashwat Chauhan in Bengaluru; Editing by Saumyadeb Chakrabarty, Shinjini Ganguli and Richard Chang
Activos relacionados
Últimas noticias
Descargo de responsabilidades: Cada una de las entidades de XM Group proporciona un servicio de solo ejecución y acceso a nuestra plataforma de trading online, permitiendo a una persona ver o usar el contenido disponible en o a través del sitio web, sin intención de cambiarlo ni ampliarlo. Dicho acceso y uso están sujetos en todo momento a: (i) Términos y Condiciones; (ii) Advertencias de riesgo; y (iii) Descargo completo de responsabilidades. Por lo tanto, dicho contenido se proporciona exclusivamente como información general. En particular, por favor tenga en cuenta que, los contenidos de nuestra plataforma de trading online no son ni solicitud ni una oferta para entrar a realizar transacciones en los mercados financieros. Operar en cualquier mercado financiero implica un nivel de riesgo significativo para su capital.
Todo el material publicado en nuestra plataforma de trading online tiene únicamente fines educativos/informativos y no contiene –y no debe considerarse que contenga– asesoramiento ni recomendaciones financieras, tributarias o de inversión, ni un registro de nuestros precios de trading, ni una oferta ni solicitud de transacción con instrumentos financieros ni promociones financieras no solicitadas.
Cualquier contenido de terceros, así como el contenido preparado por XM, como por ejemplo opiniones, noticias, investigaciones, análisis, precios, otras informaciones o enlaces a sitios de terceros que figuran en este sitio web se proporcionan “tal cual”, como comentarios generales del mercado y no constituyen un asesoramiento en materia de inversión. En la medida en que cualquier contenido se interprete como investigación de inversión, usted debe tener en cuenta y aceptar que dicho contenido no fue concebido ni elaborado de acuerdo con los requisitos legales diseñados para promover la independencia en materia de investigación de inversiones y, por tanto, se considera como una comunicación comercial en virtud de las leyes y regulaciones pertinentes. Por favor, asegúrese de haber leído y comprendido nuestro Aviso sobre investigación de inversión no independiente y advertencia de riesgo en relación con la información anterior, al que se puede acceder aquí.
