12:45 PM EDT, 08/06/2024 (MT Newswires) -- US equity indexes rebounded Tuesday from Monday's sharp sell-off amid a move higher in government bond yields and a drop in volatility.

The Nasdaq Composite climbed 1.8% with the S&P 500 up 1.8% to 5,278.2 and the Dow Jones Industrial Average advancing 1.3% to 39,185.4. All sectors rose, led by real estate, technology and financials.

"Dovish comments from the Fed officials lifted sentiment and investors looked for bargains after a recent market rout," D.A. Davidson said in a note.

The Federal Reserve stands ready to intervene and "fix" any signs of weakness or instability in the market, a Stifel note cited Chicago Fed President Austan Goolsbee as saying in a CNBC interview. Offering a relatively more calming message from Hawaii, San Francisco Fed President Mary Daly reportedly said monetary policy is having the intended effects of slowing activity.

In US economic news, the US international trade deficit narrowed to $73.11 billion in June from a $75.01 billion gap in May, compared with the $72.5 billion shortfall expected in a survey compiled by Bloomberg. Exports rose more than imports, narrowing the deficit.

Redbook US same-store sales last week rose 5.1% from a year earlier after a 4.5% increase in the previous week.

In company news, Uber Technologies ( UBER ) reported stronger-than-expected gains in Q2 results amid robust demand. Shares soared 9.6%, the second-biggest advance on the S&P 500.

Royal Caribbean Cruises ( RCL ) signed agreements with a limited number of existing holders of its 6% convertible senior notes due 2025 in exchange for a combination of cash and common stock. The shares jumped 8.8%, the third-largest gain on the S&P.

West Texas Intermediate crude oil rose 1% to $73.68 a barrel.