Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Traders work on the floor of the New York Stock Exchange in New York, the US. Picture: SPENCER PLATT/GETTY IMAGES
New York — US stocks ended 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 US recession worries.
All major S&P 500 sectors also rose.
US 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 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 gained 51.66 points, or 1%, to end at 5,237.99 points, while the Nasdaq Composite gained 166.77 points, or 1.03%, to 16,366.86. The Dow Jones industrial average 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 (bps) at its next policy meeting in September, and a 25% chance of a 25 bps reduction, the CME Group’s FedWatch Tool showed.
Stocks have sold off after the weak economic data raised worries of a US recession.
Market concerns were worsened as investors wound down 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 August 22-24.
Uber shares rose sharply after the ride-sharing and food delivery provider beat Wall Street estimates for second-quarter revenue and core profit, helped by steady demand for its services.
Caterpillar gained after beating analysts’ estimates for second-quarter profit, as higher prices on its larger excavators and other equipment countered moderating demand in North America.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
US stocks rise after global market rout
Nasdaq, Dow and S&P 500 all see partial gains
New York — US stocks ended 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 US recession worries.
All major S&P 500 sectors also rose.
US 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 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 gained 51.66 points, or 1%, to end at 5,237.99 points, while the Nasdaq Composite gained 166.77 points, or 1.03%, to 16,366.86. The Dow Jones industrial average 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 (bps) at its next policy meeting in September, and a 25% chance of a 25 bps reduction, the CME Group’s FedWatch Tool showed.
Stocks have sold off after the weak economic data raised worries of a US recession.
Market concerns were worsened as investors wound down 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 August 22-24.
Uber shares rose sharply after the ride-sharing and food delivery provider beat Wall Street estimates for second-quarter revenue and core profit, helped by steady demand for its services.
Caterpillar gained after beating analysts’ estimates for second-quarter profit, as higher prices on its larger excavators and other equipment countered moderating demand in North America.
Reuters
MARKET WRAP: Rand firms as investors assess Monday’s rout
Japan seeks to calm market’s nerves after stock price fluctuations
Gold inches up amid rising rate cut hopes
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.