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US stocks rebound on dip buying in tech following rout

Published 2024-08-05, 08:06 p/m
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Investing.com-- U.S. stocks climbed Tuesday as dip buyers piled into beaten down tech stocks following a rout a day earlier.

At 14:55 ET (18:55 GMT), the Dow Jones Industrial Average rose 728 points, or 1.9%, the S&P 500 index climbed 2.5%, and the NASDAQ Composite gained 2.6%.  

Nvidia leads tech stocks rebound

Tech stocks were led higher by a rebound in NVIDIA Corporation (NASDAQ:NVDA) as bargain seeking investors bought the dip from a day earlier. 

The rebound in Nvidia comes even as reports suggest that the chipmaker is experiencing delays in rolling out its Blackwell chip. 

Chips will remain in focus Tuesday as Super Micro Computer (NASDAQ:SMCI) reports quarterly earnings after the bell, with investors eager for cues on demand from the artificial intelligence industry. 

Apple Inc (NASDAQ:AAPL), however, struggled to participant in the broader rally as investor sentiment remained soured after Warren Buffet cut his stake in the iPhone maker by nearly 50%.     

Caterpillar Uber, Palantir shine as Q2 earnings continue 

Uber Technologies (NYSE:UBER) stock rose over 11% as the ride-hailing firm beat estimates for second-quarter revenue and core profit, helped by steady demand for its ride-sharing and food-delivery services.

Caterpillar (NYSE:CAT) stock rose 4% after the industrial giant reported a rise in quarterly adjusted profit, lifted by resilient demand for its larger excavators and other construction equipment against the backdrop of increased infrastructure spending in the U.S.

Palantir Technologies (NYSE:PLTR) surged more than 12% after the software services provider raised its annual revenue and profit forecast for the second time this year. 

Lucid Group  (NASDAQ:LCID) was also a winner on the earning stage after reporting better-than-expected revenue in the second quarter and after the EV manufacturer announced that its largest shareholder, Saudi Arabia’s Public Investment Fund (PIF), will invest up to $1.5 billion in cash. Its share price rose 1%.

Media giants Walt Disney (NYSE:DIS) and Warner Bros Discovery (NASDAQ:WBD) are due to release earnings on Wednesday.

Crypto stocks climb as Bitcoin steadies 

Cryptocurrency-related stocks including Marathon Digital Holdings Inc (NASDAQ:MARA), Coinbase Global Inc (NASDAQ:COIN), and MicroStrategy Incorporated (NASDAQ:MSTR) climbed as bitcoin steadied following a rout a day earlier.

(Peter Nurse, Ambar Warrick contrbuted to this article.)

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