NEW YORK, Aug 6 (Reuters) - The S&P 500 and Nasdaq each rose 2% on Tuesday, while the Dow was up 1% a day after a sharp sell-off as recent comments by Federal Reserve officials eased recession worries.
All major S&P 500 sectors were sharply higher, with technology (.SPRLCT), and real estate (.SPLRCR), up the most.
Among U.S. central bankers, Chicago Fed President Austan Goolsbee said on Monday that last week's disappointing jobs report was not necessarily a recessionary sign.
Nvidia (NVDA.O), jumped about 7%, giving the biggest boost to the S&P 500 and Nasdaq, a day after falling more than 6%.
"The market had just gotten top heavy, but it did reprice a decent amount, particularly the Nasdaq, and people are coming back to the idea that with lower rates it should provide a support for stocks," said Rick Meckler, partner at Cherry Lane Investments, a family investment office in New Vernon, New Jersey.
The Dow Jones Industrial Average (.DJI), rose 729.82 points, or 1.89%, to 39,433.09, the S&P 500 (.SPX), gained 124.46 points, or 2.40%, at 5,310.79 and the Nasdaq Composite (.IXIC), advanced 413.31 points, or 2.55%, to 16,613.39.
Traders are pricing in a 75% chance the Fed will cut rates by 50 basis points at its next policy meeting in September, and a 25% chance of a 25 basis point reduction. A 50 basis point cut was fully priced in on Monday, with a 75 basis point cut also seen possible, the CME Group's FedWatch Tool showed.
Stocks have sold off after weak economic data raised worries of a U.S. recession.
Market concerns were exacerbated as investors wound down yen-funded trades, used to finance acquisition of stocks for years, after a surprise Bank of Japan rate hike last week.
The next big Fed event is Chair Jerome Powell's speech at the Jackson Hole on Aug. 22-24.
Uber (UBER.N), shares rose 11.7% after the ride-sharing and food delivery provider beat Wall Street estimates for second-quarter revenue and core profit, helped by steady demand for its services.
Caterpillar (CAT.N), added 4% after beating analysts' estimates for second-quarter profit, as higher prices on its larger excavators and other equipment countered moderating demand in North America.
Advancing issues outnumbered decliners on the NYSE by a 3.78-to-1 ratio; on Nasdaq, a 2.88-to-1 ratio favored advancers.
The S&P 500 posted 12 new 52-week highs and five new lows; the Nasdaq Composite recorded 29 new highs and 126 new lows.
Additional reporting by Shubham Batra and Shashwat Chauhan in Bengaluru; Editing by Saumyadeb Chakrabarty, Shinjini Ganguli and Richard Chang
