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Major stock averages climbed Tuesday, working to recover ground lost after three straight sessions of declines sparked by recession worries.
The S&P (SP500) was +2%, after closing at a three-month low the previous day. The Nasdaq Composite (COMP:IND) was +2.2%, and the Dow Jones Industrial Average (DJI) was +1.5%. All the S&P 500’s 11 sectors were higher, led by the Financials (XLF) group. The Dow gained ~500 points, aided in part by Caterpillar (CAT).
Tuesday’s advance came after the S&P 500 (SP500) on Monday sank 3%, the sharpest decline since September 2022. Stocks had been falling on soft economic data into July’s U.S. payrolls report of slowing job additions and a rise in the unemployment rate to 4.3%. As investors worry that the Federal Reserve is late in starting rate cuts, the odds of a 50-basis-point rate cut at the September meeting have spiked up to 75%. They were below 5% before…
