US stock indices showed resilience on Tuesday, bouncing back from a global market rout that occurred on Monday. The positive momentum was driven by dovish comments from Federal Reserve policymakers, who reassured investors that the weaker-than-expected July jobs data does not necessarily indicate an impending recession. Instead, they emphasized the need for interest rate cuts to prevent such an outcome.
As of 11:24 a.m. ET, the Dow Jones Industrial Average was up 317.78 points, or 0.82%, reaching 39,021.05. The S&P 500 gained 69.49 points, or 1.34%, to 5,255.82, while the Nasdaq Composite rose by 229.45 points, or 1.42%, to 16,429.53. This positive movement was a stark contrast to the previous day’s losses, where major indices had plummeted by more than 2.5%.
One notable stock that rebounded on Tuesday was AI chip giant Nvidia, which saw a 4.4% increase in its stock price. However, tech giant Apple experienced a 1.9% decline as Warren Buffett’s Berkshire Hathaway reduced its stake in the company by half during the second quarter. On the other hand, Uber’s stock surged by 7.7% following better-than-expected second-quarter revenue results.
Caterpillar shares also saw a 3% increase after reporting stronger earnings than anticipated. Similarly, Palantir Technologies experienced a significant boost, with its stock soaring by 11.8% after raising its annual revenue and profit forecasts. These positive performances contributed to the overall upward trend in the stock market on Tuesday.
In the bond market, Treasury 10-year yields rose by 5 basis points to 3.84%. This increase in yields reflected a shift in investor sentiment towards riskier assets, as concerns about a potential economic downturn eased.
Turning to the commodities market, crude oil prices remained near a seven-month low on Tuesday, with global benchmark Brent trading slightly above $76 a barrel. Despite some early gains, oil prices struggled to maintain momentum amidst the ongoing volatility in global equity markets.
On the other hand, gold prices saw a modest increase on Tuesday following the comments from Fed officials. Spot gold rose by 0.3% to $2,413.90 per ounce, while US gold futures gained 0.5% to $2,455.30. In contrast, spot silver fell by 0.7% to $27.09 per ounce, reflecting mixed movements in the precious metals market.
Overall, Tuesday’s market performance highlighted the resilience of US stock indices in the face of global economic uncertainties. The dovish stance of Federal Reserve policymakers and positive earnings reports from key companies helped boost investor confidence and drive the market higher. As the market continues to navigate through volatility, investors will closely monitor economic indicators and corporate earnings to gauge the trajectory of the stock market in the coming days.