Stocks recovered some losses from Monday's dramatic selloff on Tuesday as investors took advantage of the three-day losing streak to buy in stocks at a discount. The Dow Jones Industrial Average climbed nearly 300 points, while the S&P 500 Index and Nasdaq Composite both added over 1%.

Here's how the market ended on Tuesday:

S&P 500 Index (SPY  ): +1.04% or +53.70 points to 5,240.03

Dow Jones Industrial Average (DIA  ): +0.76% or +294.39 points to 38,997.66

Nasdaq Composite Index (QQQ  ): +1.03% or +166.77 points to 16,366.85

In Focus:

BlackRock's Investment Institute wrote in a note that Wall Street is expected to recover from Monday's global market sell-off as U.S. recession fears are mostly overblown.

"We think risk assets can recover as recession fears ease and the rapid unwinding of carry trades stabilizes," the firm wrote. "We keep out overweight to U.S. equities, driven by the AI mega force, and see the selloff presenting buying opportunities."

The firm added that the main catalyst behind rising unemployment is coming from an increase in labor supply connected to immigration as opposed to widespread layoffs, making Friday's disappointing jobs report look more like a hiring slowdown than a recession.

All 11 broader market sectors were positive on Tuesday.

FedWatch:

San Francisco Federal Reserve President Mary Daly signaled that interest rate cuts are coming later this year during a forum hosted in partnership with the Hawaii Executive Collaborative on Monday, highlighting how the economy is still showing signs of growth alongside a weakening labor market, creating an environment for less restrive policy.

"Policy adjustments will be necessary in the coming quarter," Daly said. "How much that needs to be done and when it needs to take place, I think that's going to depend a lot on the incoming information...I see an economy that have momentum, and we want to make sure we keep that."

On the Earnings Front:

Caterpillar (CAT  ) reported better-than-expected adjusted profit on Tuesday as the industrial bellwether's energy and transportation business grew during the quarter. However, it's revenue came in below estimates as changes in dealer investors impacted sales volumes.

Caterpillar also slashed its full-year outlook, now expecting revenue to come in "slightly lower" than 2023. Still, it reiterated its 2024 outlook for capital expenditures between $2 billion to $2.5 billion, and expects restructuring costs of around $450 million compared with previous guidance of between $300 million to $450 million.

Uber (UBER  ) delivered strong second-quarter results on Tuesday, with its monthly active platform consumers (MAPC) notably reaching 156 million with 2.77 billion trips during the quarter, compared to 137 million MAPCs and 2.28 billion trips for the same period last year. Moreover, its gross bookings rose by 23% to $20.6 billion.

"Uber's growth engine continues to hum, delivering our sixth consecutive quarter of trip growth above 20 percent, alongside record profitability," said CEO Dara Khosrowshahi in a release. "The Uber consumer has never been stronger--more people are using the platform, and more frequently, than ever before--while drivers and couriers earned a new all-time high of $17.9 billion over the quarter."

For its third quarter, Uber expects bookings of $40.25 billion to $41.75 billion, with adjusted earnings of $1.58 billion to $1.68 billion.

Palantir Technologies (PLTR  ) also topped expectations in its second-quarter late Monday, with the artificial intelligence software maker's stock popping higher on Tuesday on its strong forward guidance. For its current quarter, Palantir expects revenue in a range of $697 million to $701 million. The company also raised its full year 2024 guidance by about 2% to between $2.742 billion and $2.750 billion.

"Our customer count in the U.S. commercial market grew 83% year-over-year, from 161 in Q2 2023 to 295 in Q2 2024, and now accounts for half of all of our customers," CEO Alex Karp said in a letter to shareholders.

For Wednesday:

Market participants will turn their attentions towards another round of earnings reports from companies including Airbnb (ABNB  ), Super Micro Computer (SMCI  ), Novo Nordisk (NVO  ), Disney (DIS  ), CVS Health (CVS  ) and Shopify (SHOP  ).