NEW YORK: 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 bounced back 2.3 percent.

Apple slipped 1.9 percent, extending a nearly 5 percent drop on Monday after Warren Buffett’s Berkshire Hathaway cut its stake in the iPhone maker by half. Both the S&P 500 and the Nasdaq Composite posted losses of at least 3 percent each in the previous session after weak economic data raised worries of a US 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 percent selloff in the S&P 500 index.

“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.

US 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 percent chance of a 50-basis-point rate cut in September, down from 85 percent on Monday and expect the year-end rates at 4.25 percent-4.50 percent, 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 am ET, the Dow Jones Industrial Average rose 31.52 points, or 0.08 percent, to 38,734.79, the S&P 500 gained 23.82 points, or 0.46 percent, to 5,210.15 and the Nasdaq Composite gained 79.95 points, or 0.49 percent, to 16,280.03. Ten of the 11 major S&P 500 sectors were trading higher, with consumer staples and information technology leading the gains. 

Among other movers, Palantir Technologies surged 10.2 percent after the software services provider raised its annual revenue and profit forecasts for the second time this year. Uber jumped 4.3 percent 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 added 1 percent 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 added 12.3 percent 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. —Reuters