Investing.com-- U.S. stocks rose Tuesday, recovering to a degree after Monday's rout although concerns over an economic slowdown remain.
At 09:35 ET (13:35 GMT), the Dow Jones Industrial Average rose 55 points, or 0.2%, the S&P 500 index climbed 25 points, or 0.5%, and the NASDAQ Composite gained 70 points, or 0.4%.
Recession fears spark deep losses
Concerns over a drastic slowdown in economic growth, following a string of underwhelming purchasing managers index and labor market readings, saw DJIA, S&P 500 and Nasdaq drop 5%, 6% and 8% respectively in three days, their worst 3-day performance in more than two years.
Weak economic data fueled fears that the Federal Reserve had kept interest rates high for too long, and that any cuts by the central bank now would be insufficient in helping the economy gain a soft landing.
Still, markets did increase their expectations for a 50 basis point cut in September, and were pricing in at least 100 bps in rate cuts this year, CME Fedwatch showed.
Q2 earnings continue
Caterpillar (NYSE:CAT) stock rose 1% 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.
Uber Technologies (NYSE:UBER) stock rose over 5% 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.
Super Micro Computer (NASDAQ:SMCI) is also due on Tuesday after the bell, and is set to offer more cues on demand from the artificial intelligence industry.
Additionally, Palantir Technologies (NYSE:PLTR) surged 11% after the software services provider raised its annual revenue and profit forecast for the second time this year, while Lucid Group (NASDAQ:LCID) rallied over 9% on 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..
Media giants Walt Disney (NYSE:DIS) and Warner Bros Discovery (NASDAQ:WBD) are due to release earnings on Wednesday.
Crude continue to fall
Crude prices fell Tuesday, continuing to fall in volatile trading after falling to eighth-month lows on global demand worries.
By 09:35 ET, the U.S. crude futures (WTI) dropped 0.9% to 72.30 a barrel, while the Brent contract fell 0.8% to $75.73 a barrel.
Concerns over an escalation in the Israel-Hamas war, especially after Iran vowed retaliation over the killing of a Hamas leader in Tehran, have provided an element of support for the oil markets.
However, sentiment remains very fragile amid fears slowing economic growth will dent demand, especially as underwhelming U.S. labor market readings ramped up concerns over a potential recession in the country.
(Ambar Warrick contrbuted to this article.)