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
Actifs liés
Dernières actualités
Avertissement : Les entités de XM Group proposent à notre plateforme de trading en ligne un service d'exécution uniquement, autorisant une personne à consulter et/ou à utiliser le contenu disponible sur ou via le site internet, qui n'a pas pour but de modifier ou d'élargir cette situation. De tels accès et utilisation sont toujours soumis aux : (i) Conditions générales ; (ii) Avertissements sur les risques et (iii) Avertissement complet. Un tel contenu n'est par conséquent fourni que pour information générale. En particulier, sachez que les contenus de notre plateforme de trading en ligne ne sont ni une sollicitation ni une offre de participation à toute transaction sur les marchés financiers. Le trading sur les marchés financiers implique un niveau significatif de risques pour votre capital.
Tout le matériel publié dans notre Centre de trading en ligne est destiné à des fins de formation / d'information uniquement et ne contient pas – et ne doit pas être considéré comme contenant – des conseils et recommandations en matière de finance, de fiscalité des investissements ou de trading, ou un enregistrement de nos prix de trading ou une offre, une sollicitation, une transaction à propos de tout instrument financier ou bien des promotions financières non sollicitées à votre égard.
Tout contenu tiers, de même que le contenu préparé par XM, tels que les opinions, actualités, études, analyses, prix, autres informations ou liens vers des sites tiers contenus sur ce site internet sont fournis "tels quels", comme commentaires généraux sur le marché et ne constituent pas des conseils en investissement. Dans la mesure où tout contenu est considéré comme de la recherche en investissement, vous devez noter et accepter que le contenu n'a pas été conçu ni préparé conformément aux exigences légales visant à promouvoir l'indépendance de la recherche en investissement et, en tant que tel, il serait considéré comme une communication marketing selon les lois et réglementations applicables. Veuillez vous assurer que vous avez lu et compris notre Avis sur la recherche en investissement non indépendante et notre avertissement sur les risques concernant les informations susdites, qui peuvent consultés ici.
