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S&P, Nasdaq rebound after Monday's sell-off

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US-listed shares of Chinese companies fall

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PepsiCo ( PEP ) rises after results

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Indexes up: Dow 0.08%, S&P 500 0.69%, Nasdaq 1.09%

(Updates to 1357 ET/1757 GMT)

By David French and Lisa Pauline Mattackal

Oct 8 (Reuters) - The S&P 500 and Nasdaq Composite rose

on Tuesday, recouping some of the previous session's losses, as

investors shifted attention to upcoming third-quarter earnings

and inflation data which may offer the next clues for how

interest rate cuts will unfold.

All three of the main indexes suffered a sell-off on Monday,

falling roughly 1% each, as they were pressured by surging

Treasury yields, escalating Middle East tensions, and a

re-evaluation of U.S. rate expectations.

Investors have been locked in all year on the U.S. Federal

Reserve and how it plans to deliver its long-expected bout of

interest rate cuts, with each new economic data set studied for

how it could influence the thinking of the central bank.

Last week's data releases, including Friday's

stronger-than-expected jobs report, had prompted investors to

trim their rate cut bets slightly, albeit leaning more toward a

25 basis-point cut at the next Fed meeting in November, as

opposed to 50 bps.

Traders have now priced in a nearly 89% chance of a 25

basis-point interest rate cut in November, according to CME

FedWatch.

Markets now await consumer price index data, due this

Thursday, for the next signpost on the path of interest rates.

"The Fed keeps telling you that they're data-dependent - so

the end of this week is big to see whether or not inflation is

truly tamed," said Kim Forrest, chief investment officer at

Bokeh Capital Partners.

"But the Fed has been signaling where - not necessarily when

- rates are going, and they have signaled that they're going

lower."

Monday's pressure on equity markets from rising Treasury

yields eased somewhat on Tuesday. The two-year Treasury yield

slipped slightly from Monday's highs, but the yield on the

benchmark 10-year note remained above 4%.

This abatement allowed investors to return to betting on

high-growth stocks, which benefit from lower debt costs to fuel

their growth, such as technology companies.

The information technology index led the gainers

among the S&P 500 sectors, rising 1.7%. It was aided by advances

of 5.4% and 4.8%, respectively, by Palantir Technologies ( PLTR )

and Palo Alto Networks ( PANW ).

Heavyweight Nvidia ( NVDA ) was also 3.7% higher.

At 1:57 p.m. EDT, the S&P 500 was up 39.02 points, or

0.69%, to 5,734.96 points, while the Nasdaq Composite

climbed 195.38 points, or 1.09%, to 18,119.29. The Dow Jones

Industrial Average rose 32.93 points, or 0.08%, to

41,987.17.

Most S&P sectors gained. Among the few trailing were the

materials sector, which fell 0.6% to a low of more

than two weeks, as metal prices slipped on waning optimism over

China's stimulus measures.

U.S.-listed shares of Chinese companies also slid, tracking

losses in domestic stocks. Shares of Alibaba Group,

JD.com and PDD Holdings ( PDD ) lost between 5.8% and

7.7%.

Energy was also a decliner, slipping 2.4% as oil

prices retreated following Monday's rally.

Third-quarter earnings are also coming in to focus, with

major banks scheduled to report this Friday. The estimated

earnings growth rate for the S&P 500 is 5%, according to LSEG

estimates.

PepsiCo ( PEP ) reversed premarket losses, rising 1.5%,

after the snack maker trimmed its forecast for annual sales

growth, but reported adjusted earnings per share above

estimates.