Wall Street Rises After the Toughest Day of the Year

All sectors ended with gains, with real estate (2.3%), financials (1.46%), and communications (1.22%) standing out.

Ignacio Teson•Tuesday, August 6, 2024•1 min read

Investors re-entered the market seeking bargain buys after suffering a dramatic sell-off of risk assets.

The three main Wall Street indices recovered some of the ground lost in their worst session in two years. Investors returned to the market following a dramatic sell-off of risk assets.

The leading index, the Dow Jones, which includes the stocks of 30 large companies, gained 0.76% to reach 38,997.66 points. The S&P 500, which comprises 500 stocks, rose by 1.04% to 5,240.03 points, and the Nasdaq increased by 1.03% to 16,366.85 points.

After a day of concerns about the U.S. economy, the market rose due to bargain buying. This occurred after comments from some Federal Reserve members eased recession fears.

Among the top performers was Nvidia (+3.78%), which provided the biggest boost to the S&P 500 and Nasdaq. The chipmaker’s shares had fallen 14% in just three days.

SPX

All sectors ended with gains, with real estate (2.3%), financials (1.46%), and communications (1.22%) standing out. Within the Dow Jones 30, Caterpillar (3.04%) shone after a positive report, along with Dow Inc (2.88%).

Caterpillar’s second-quarter earnings were $5.99 per share, surpassing analysts’ estimates of $5.54. This highlighted its efficiency despite a 3.6% drop in revenue that missed market expectations.

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ABOUT THE AUTHOR See More

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.