S&P 500, Nasdaq jump 2% each after dramatic sell-off
Uber jumps after Q2 revenue beat
Caterpillar rises after Q2 profit beat
Indexes up: Dow up 1.9%, S&P 500 up 2.4%, Nasdaq up 2.6%
Updates to 2:30 p.m. ET
By Caroline Valetkevitch
NEW YORK, Aug 6 (Reuters) - The S&P 500 and Nasdaq each rose 2% on Tuesday, while the Dow was up 1%a dayafter a sharp sell-offas recent comments by FederalReserve officials eased recession worries.
All major S&P 500 sectors were sharply higher, with technology .SPRLCT and real estate .SPLRCR up the most.
Among U.S. central bankers , Chicago Fed President Austan Goolsbee said on Monday that last week's disappointing jobs report was not necessarily a recessionary sign.
Nvidia NVDA.O jumped about 7%, giving the biggest boost to the S&P 500 and Nasdaq, a day after falling more than 6%.
"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 729.82 points, or 1.89%, to 39,433.09, the S&P 500 .SPX gained 124.46 points, or 2.40%, at 5,310.79 and the Nasdaq Composite .IXIC advanced 413.31 points, or 2.55%, to 16,613.39.
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. A 50 basis point cut was fully priced in on Monday, with a 75 basis point cut also seen possible, the CME Group's FedWatch Tool showed.
Stocks have sold offafter weak economic 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 11.7%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 added 4% after beating analysts' estimates for second-quarter profit, as higher prices on its larger excavators and other equipment countered moderating demand in North America.
Advancing issues outnumbered decliners on the NYSE by a 3.78-to-1 ratio; on Nasdaq, a 2.88-to-1 ratio favored advancers.
The S&P 500 posted 12 new 52-week highs and five new lows; the Nasdaq Composite recorded 29 new highs and 126 new lows.
Additional reporting by Shubham Batra and Shashwat Chauhan in Bengaluru; Editing by Saumyadeb Chakrabarty, Shinjini Ganguli and Richard Chang
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