Wall St regains some ground after big stocks rout
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Uber jumps after Q2 revenue beat
Caterpillar rises after Q2 profit beat
Indexes up: Dow 0.1%, S&P 0.5%, Nasdaq 0.5%
Updated at 9:35 a.m. ET/ 1335 GMT
By Shubham Batra and Shashwat Chauhan
Aug 6 (Reuters) -Wall Street's main indexes rose in volatile trading on Tuesday, as investors looked for bargains after a rout in the previous session, while dovish rate commentary from Federal Reserve officials also lifted the mood.
Most megacap and growth stocks, which together lost $200 billion in market value on Monday, gained as Nvidia NVDA.O bounced back 2.3%.
Apple AAPL.O slipped 1.9%, extending a nearly 5% drop on Monday after Warren Buffett's Berkshire Hathaway BRKa.N cut its stake in the iPhone maker by half.
Both the S&P 500 and the Nasdaq Composite .IXIC posted losses of at least 3% each in the previous session after weak economic data raised worries of a U.S. recession and the unwinding of sharp positions of carry trades that fund high-yielding assets.
Goldman Sachs in a note said investors typically profit when they buy after a 5% selloff in the S&P 500 index .SPX.
"We're getting a relief rally specifically because the yen depreciated a little bit overnight and that would remove the pressure for margin calls, so the selling pressure has abated, which provides an opportunity for the market to rise with some buyers coming to the table," said David Waddell, CEO and chief investment strategist at Waddell & Associates.
U.S. central bank policymakers pushed back on Monday against the notion that weaker-than-expected July jobs data means the economy is in recessionary freefall, but also warned that the Fed will need to cut rates to avoid such an outcome.
Traders currently see an about 75% chance of a 50-basis-point rate cut in September, down from 85% on Monday and expect the year-end rates at 4.25%-4.50%, according to CME's FedWatch Tool.
A closely watched gap between the two- and 10-year benchmark yields turned positive on Monday, which typically indicates that the economy is heading into a downturn.
At 09:35 a.m. ET, the Dow Jones Industrial Average .DJI rose 31.52 points, or 0.08%, to 38,734.79, the S&P 500 .SPX gained 23.82 points, or 0.46%, to 5,210.15 and the Nasdaq Composite .IXIC gained 79.95 points, or 0.49%, to 16,280.03.
Ten of the 11 major S&P 500 sectors were trading higher, with consumer staples .SPLRCS and information technology .SPLRCT leading the gains.
Among other movers, Palantir Technologies PLTR.N surged 10.2% after the software services provider raised its annual revenue and profit forecasts for the second time this year.
Uber UBER.N jumped 4.3% after it beat Wall Street estimates for second-quarter revenue and core profit, helped by steady demand for its ride-sharing and food-delivery services.
Caterpillar CAT.N added 1% after beating Wall Street estimates for second-quarter profit, as higher prices on its larger excavators and other equipment countered moderating demand in North America.
Kenvue KVUE.N added 12.3% after beating estimates for second-quarter profit and revenue, helped primarily by better-than-expected sales in its essential health products unit.
Advancing issues outnumbered decliners by a 1.25-to-1 ratio on the NYSE and by a 1.27-to-1 ratio on the Nasdaq.
The S&P 500 posted one new 52-week high and 4 new lows, while the Nasdaq Composite recorded 10 new highs and 39 new lows.
Reporting by Shubham Batra and Shashwat Chauhan in Bengaluru; Editing by Saumyadeb Chakrabarty and Shinjini Ganguli
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