Wall Street today: S&P 500, Nasdaq climb over 1% after global markets rout

US stock indices edged higher on Tuesday after a rout in global markets on Monday.

Investors’ sentiments were lifted by dovish comments from the Federal Reserve policymakers. They pushed back against the notion that weaker-than-expected July jobs data means that the US economy is slipping into recession.

They also warned that interest rate cuts will be needed to avoid such an outcome.

At 11:24 a.m. ET, the Dow Jones Industrial Average rose 317.78 points, or 0.82 per cent, to 39,021.05, the S&P 500 gained 69.49 points, or 1.34 per cent, to 5,255.82 and the Nasdaq Composite gained 229.45 points, or 1.42 per cent, to 16,429.53.

At 09:35 a.m. ET, the Dow Jones Industrial Average rose 31.52 points, or 0.08 per cent, to 38,734.79, the S&P 500 gained 23.82 points, or 0.46 per cent, to 5,210.15 and the Nasdaq Composite gained 79.95 points, or 0.49 per cent, to 16,280.03.

At the opening bell, the Dow Jones Industrial Average rose 1.16 points to 38,704.43. The S&P 500 was higher by 17.73 points, or 0.34 per cent, at 5,204.06, while the Nasdaq Composite was up 63.7 points, or 0.39 per cent, to 16,263.7.

Major indices had lost more than 2.5 per cent on Monday in a move seen as a reflection of worries about a US economic recession.

On Monday, megacap and growth stocks had together lost $200 billion in market value.

AI chip giant Nvidia’s stock rebounded 4.4 per cent.

Apple stock extended losses, dropping 1.9 per cent. Warren Buffett's Berkshire Hathaway reduced its stake in the iPhone maker by half in the second quarter.

Uber stock jumped 7.7 per cent after the company reported better than expected second quarter revenue.

Caterpillar shares gained 3 per cent after reporting stronger earnings than expected.

Palantir Technologies soared 11.8 per cent after the software services provider raised its annual revenue and profit forecasts.

In the bond market, Treasury 10-year yields advanced 5 basis points to 3.84%.

Crude oil

Oil prices on Tuesday were near a seven-month low as turmoil eased on global equity markets.

Global benchmark Brent traded a little above $76 a barrel, giving up earlier gains.

Bullion

Gold prices rose on Tuesday after comments from Fed officials.

Spot gold added 0.3 per cent at $2,413.90 per ounce by 1134 GMT. US gold futures gained 0.5 per cent to $2,455.30.

Spot silver fell 0.7 per cent to $27.09 per ounce.