Dow Soars 500 Points Following Monday’s Stock Market Turmoil – One America News Network
OAN Staff James Meyers
11:43 AM – Tuesday, August 6, 2024
Wall Street somewhat rebounded from a disaster on Tuesday, as main stock indexes grew over 1%. Investors searched for bargains after a global stock selloff and panic of a possible recession occurred on Monday.
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During mid-day trading, the Dow Jones Industrial average jumped 516 points or 1.3%, to 39,291. Additionally, the S&P 500 and the Nasdaq both gained 1.9%.
Among growth stocks and mega cap, Nvidia made a recovery with a 4.4% gain after posting similar losses on Monday, while Apple slipped over 1%, extending an almost 5% drop in the previous session after Warren Buffett’s Berkshire Hathaway dropped its stake in the iPhone maker by half.
Goldman Sachs representatives also commented on the rebound, saying that investors typically take advantage and profit when they buy after a 5% 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.
U.S central bank policymakers noted that a recession could be looming, and they also warned that the Fed will need to cut rates to avoid that outcome.
Meanwhile, traders see about a 75% chance of a 50-basis-point rate cut in September, down from 85% on Monday, and they expect the year-end rates to be at 4.25%-4.50%, according to CME’s FedWatch Tool.
Ten of the 11 major S&P 500 sectors were trading higher, with information technology (IT) leading the gains. Additionally, Uber jumped 4.3% after it beat Wall Street expectations for second-quarter revenue and core profit.
Additionally, another big mover included Palantir Technologies, which moved 10% after the company raised its annual revenue and profit forecast for the second time this year.
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