By James Myers, OAN Staff
Tuesday, August 6, 2024 11:43 AM
Wall Street recovered somewhat from the carnage on Tuesday, with major stock indexes rising more than 1% as investors hunted for bargains after Monday’s global sell-off in stocks and panic over a possible economic recession.
advertisement
During midday trading, the Dow Jones Industrial Average rose 516 points, or 1.3%, to 39,291. Additionally, the S&P 500 and Nasdaq both rose 1.9%.
Among growth and large-cap stocks, Nvidia rebounded to rise 4.4% after a similar drop on Monday, while Apple slid more than 1% after Warren Buffett’s Berkshire Hathaway halved its stake in the iPhone maker, down almost 5% in the previous session.
A representative from Goldman Sachs also commented on the rally, saying that investors typically seize the opportunity to profit by buying after the S&P 500 Index falls by 5%.
“Stocks are particularly rising out of relief as the yen weakened slightly overnight, which took the pressure off margin calls, eased selling pressure and created an opportunity for buyers to step in and drive prices higher,” said David Waddell, CEO and chief investment strategist at Waddell & Associates.
U.S. central bank policymakers have warned that a recession may be looming and that the Fed needs to cut interest rates to avert it.
Meanwhile, traders see about a 75% chance of a 50 basis point cut in September, down from 85% on Monday, according to CME’s FedWatch tool, and see rates ending the year at 4.25% to 4.50%.
Ten of the 11 major sectors in the S&P 500 rose, led by information technology, and Uber rose 4.3% after its second-quarter revenue and core profit beat Wall Street expectations.
Another big mover was Palantir Technologies, which rose 10% after raising its full-year revenue and profit forecasts for the second time this year.
Stay up to date! Receive the latest news directly in your email for free. Sign up here: https://www.oann.com/alerts
Advertisement below
Please share this post!
