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Uber ( UBER ) jumps after Q2 revenue beat

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Caterpillar ( CAT ) rises after Q2 profit beat

(Updates to 4 p.m. ET)

By Caroline Valetkevitch

NEW YORK, Aug 6 (Reuters) -

U.S. stocks ended sharply higher on Tuesday as investors

jumped back into the market a day after a dramatic sell-off, as

recent comments by Federal Reserve officials eased U.S.

recession worries.

All major S&P 500 sectors also rose sharply.

U.S. central bank policymakers

pushed back against

the idea that weaker-than-expected July jobs data means the

economy is headed for a recession, but they also warned that the

Fed will need to cut interest rates to avoid such an outcome.

Nvidia ( NVDA ) gave the biggest boost to the S&P 500

and Nasdaq.

"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.

According to preliminary data, the S&P 500

gained 51.66 points, or 1.00%, to end at 5,237.99 points,

while the Nasdaq Composite gained 166.77 points, or

1.03%, to 16,366.86. The Dow Jones Industrial Average

rose 284.86 points, or 0.74%, to 38,988.13.

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, the

CME Group's FedWatch Tool showed.

Stocks have sold off after the 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 ) shares rose sharply 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 ) gained after beating analysts' estimates

for second-quarter profit, as higher prices on its larger

excavators and other equipment countered moderating demand in

North America.

(Additional reporting by Shubham Batra and Shashwat Chauhan in

Bengaluru; Editing by Saumyadeb Chakrabarty, Shinjini Ganguli

and Richard Chang)