Markets Surge as Fed Comments Ease Recession Fears

The S&P 500 and Nasdaq rose 2% Tuesday, with the Dow gaining 1%, rebounding after a sell-off. Federal Reserve comments helped ease recession concerns. Nvidia jumped 7%, leading gains. Uber shares rose 11.7% on strong earnings. Traders see a high probability of rate cuts in the next Fed meeting.

The S&P 500 and Nasdaq each surged 2% on Tuesday, while the Dow gained 1%, bouncing back a day after a sharp sell-off. This renewed optimism came as comments from Federal Reserve officials helped alleviate concerns over an impending recession.

Technology and real estate sectors led gains among S&P 500 stocks, with Nvidia jumping about 7%, significantly boosting both the S&P 500 and Nasdaq. Last week's disappointing jobs report was downplayed by Chicago Fed President Austan Goolsbee, who suggested it wasn't a clear sign of recession.

The Dow Jones Industrial Average climbed 729.82 points to 39,433.09, the S&P 500 increased 124.46 points to 5,310.79, and the Nasdaq Composite advanced 413.31 points to 16,613.39. Traders are projecting a 75% chance of a 50 basis point rate cut by the Fed in September.

In corporate news, Uber shares surged 11.7% after the company exceeded Wall Street's expectations for second-quarter revenue and profit, while Caterpillar's stock rose 4% on strong quarterly results. Advancing issues outnumbered decliners significantly on both the NYSE and Nasdaq.