Wall Street rebounds with strong gains

STORY: Wall Street's main indexes rebounded Tuesday, as investors jumped back into the market a day after a dramatic sell-off.

The Dow gained three-quarters of a percent, and the S&P 500 and Nasdaq each added one percent.

In recent comments, Federal Reserve policymakers have pushed back against the idea that weaker-than-expected July jobs data means the economy is headed for a recession.

Bill Fitzpatrick, portfolio manager at Logan Capital Management, agrees with that sentiment - at least for now.

"So with regards to a potential recession, I would first point out that the U.S. economy is still growing at a two-and-a-half percent clip. So as of today, we're in no danger of a near-term recession. That being said, a number of indicators would suggest that our economy is not only weakening but will continue to weaken. And remember the impact of higher interest rates takes place on a very significant lag. It's not six months, it's more 12, 18, perhaps 24 months and we're starting to see that work its way into the U.S. economy."

Traders are pricing in a 75% chance the Fed will cut rates by 50 basis points at its next policy meeting in September, according to the CME Group's FedWatch Tool.

Though later this month Federal Reserve Chair Jerome Powell could give an indication of where the central bank stands during his speech at the annual meeting of central bank officials in Jackson Hole, Wyoming.

Stocks on the move Tuesday included AI darling Nvidia, up nearly 4%, giving the S&P and Nasdaq their biggest boosts.

Uber shares jumped 11% 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.

And Caterpillar gained 3% after beating analysts' estimates for second-quarter profit, as higher prices on its larger excavators and other equipment countered moderating demand in North America.