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Uber ( UBER ) jumps after Q2 revenue beat

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Caterpillar ( CAT ) rises after Q2 profit beat

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Indexes up: Dow 0.1%, S&P 0.5%, Nasdaq 0.5%

(Updated at 9:35 a.m. ET/ 1335 GMT)

By Shubham Batra and Shashwat Chauhan

Aug 6 (Reuters) - Wall Street's main indexes rose in

volatile trading on Tuesday, as investors looked for bargains

after a rout in the previous session, while dovish rate

commentary from Federal Reserve officials also lifted the mood.

Most megacap and growth stocks, which together lost $200

billion in market value on Monday, gained as Nvidia ( NVDA )

bounced back 2.3%.

Apple ( AAPL ) slipped 1.9%, extending a nearly 5% drop on

Monday after Warren Buffett's Berkshire Hathaway ( BRK/A ) cut

its stake in the iPhone maker by half.

Both the S&P 500 and the Nasdaq Composite posted

losses of at least 3% each in the previous session after weak

economic data raised worries of a U.S. recession and the

unwinding of sharp positions of carry trades that fund

high-yielding assets.

Goldman Sachs in a note said investors typically profit when

they buy after a 5% selloff in the S&P 500 index.

"We're getting a relief rally specifically because the yen

depreciated a little bit overnight and that would remove the

pressure for margin calls, so the selling pressure has abated,

which provides an opportunity for the market to rise with some

buyers coming to the table," said David Waddell, CEO and chief

investment strategist at Waddell & Associates.

U.S. central bank policymakers pushed back on Monday against

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

economy is in recessionary freefall, but also warned that the

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

Traders currently see an about 75% chance of a

50-basis-point rate cut in September, down from 85% on Monday

and expect the year-end rates at 4.25%-4.50%, according to CME's

FedWatch Tool.

A closely watched gap between the two- and 10-year benchmark

yields turned positive on Monday, which typically indicates that

the economy is heading into a downturn.

At 09:35 a.m. ET, the Dow Jones Industrial Average

rose 31.52 points, or 0.08%, to 38,734.79, the S&P 500

gained 23.82 points, or 0.46%, to 5,210.15 and the Nasdaq

Composite gained 79.95 points, or 0.49%, to 16,280.03.

Ten of the 11 major S&P 500 sectors were trading higher,

with consumer staples and information technology

leading the gains.

Among other movers, Palantir Technologies ( PLTR ) surged

10.2% after the software services provider raised its annual

revenue and profit forecasts for the second time this year.

Uber ( UBER ) jumped 4.3% after it beat Wall Street

estimates for second-quarter revenue and core profit, helped by

steady demand for its ride-sharing and food-delivery services.

Caterpillar ( CAT ) added 1% after beating Wall Street

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

larger excavators and other equipment countered moderating

demand in North America.

Kenvue ( KVUE ) added 12.3% after beating estimates for

second-quarter profit and revenue, helped primarily by

better-than-expected sales in its essential health products

unit.

Advancing issues outnumbered decliners by a 1.25-to-1 ratio

on the NYSE and by a 1.27-to-1 ratio on the Nasdaq.

The S&P 500 posted one new 52-week high and 4 new lows,

while the Nasdaq Composite recorded 10 new highs and 39 new

lows.

(Reporting by Shubham Batra and Shashwat Chauhan in Bengaluru;

Editing by Saumyadeb Chakrabarty and Shinjini Ganguli)