Indexes end with strong gains, rebounding from global market rout
Uber jumps after Q2 revenue beat
Caterpillar rises after Q2 profit beat
Updates to 4 p.m. ET
By Caroline Valetkevitch
NEW YORK, Aug 6 (Reuters) - U.S. stocks ended sharply higher on Tuesday as investors jumped back into the market a day after a dramatic sell-off, as recent comments by Federal Reserve officials eased U.S. recession worries.
All major S&P 500 sectors also rose sharply.
U.S. central bank policymakers pushed back against the idea that weaker-than-expected July jobs data means the economy is headed for a recession, but they also warned that the Fed will need to cut interest rates to avoid such an outcome.
Nvidia NVDA.O gave the biggest boost to the S&P 500 and Nasdaq.
"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.
According to preliminary data, the S&P 500 .SPX gained 51.66 points, or 1.00%, to end at 5,237.99 points, while the Nasdaq Composite .IXIC gained 166.77 points, or 1.03%, to 16,366.86. The Dow Jones Industrial Average .DJI rose 284.86 points, or 0.74%, to 38,988.13.
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.
Stocks have sold offafter the weakeconomic data raised worries of a U.S. recession.
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 on Aug. 22-24.
UberUBER.N shares rose sharplyafter 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 afterbeating analysts' estimates for second-quarter profit, as higher prices on its larger excavators and other equipment countered moderating demand in North America.
Additional reporting by Shubham Batra and Shashwat Chauhan in Bengaluru; Editing by Saumyadeb Chakrabarty, Shinjini Ganguli and Richard Chang
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