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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

(Recasts with preliminary closing details)

By David French

Oct 8 (Reuters) - Wall Street's benchmarks ended higher

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

investors bought back in to technology stocks and investors

shifted their focus to upcoming inflation data and the start of

third-quarter earnings season.

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.

The easing of Treasury yields somewhat on Tuesday, however,

meant investors were drawn to 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. It was aided by advances by Palantir

Technologies ( PLTR ) and Palo Alto Networks ( PANW ).

Heavyweight tech names were also buoyant, helping to push

the Nasdaq to the highest percentage gain of the three

main benchmarks.

Nvidia ( NVDA ) was the pick of the so-called Magnificent

Seven tech stocks, but there were also gains for Apple ( AAPL ),

Tesla and Meta Platforms ( META ).

According to preliminary data, the S&P 500

gained 54.75 points, or 0.96%, to end at 5,750.69 points,

while the Nasdaq Composite gained 255.06 points, or

1.42%, to 18,178.97. The Dow Jones Industrial Average

rose 121.08 points, or 0.29%, to 42,075.32.

While the abatement of rising Treasury yields helped tech

stocks, it is still interest rate policy that is guiding traders

and the U.S. equity markets.

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.

"I do think (Friday's) labor market report, and the CPI

report combined, are the two primary items for the Federal

Reserve heading in to their next meeting," said Jason Pride,

chief of investment strategy and research at Glenmede.

He added that if the CPI lands anywhere in the ballpark of

what is expected, that would portend a 25 bps November cut.

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

materials sector, which fell 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 ) slumped.

Energy was also a decliner, slipping 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 ) gained after the snack maker trimmed its

forecast for annual sales growth, but reported adjusted earnings

per share above estimates.