Stocks bounced back Tuesday, a day after a global plunge

NEW YORK, Aug 6 (Reuters) - U.S. stocks ended sharply higher on Tuesday as investors jumped back into the market a day after a dramatic sell-off, as recent comments by Federal Reserve officials eased U.S. recession worries.

All major S&P 500 sectors also rose sharply.

U.S. central bank policymakers pushed back against the idea that weaker-than-expected July jobs data means the economy is headed for a recession, but they also warned that the Fed will need to cut interest rates to avoid such an outcome.

"The market had just gotten top heavy, but it did reprice a decent amount, particularly the Nasdaq, and people are coming back to the idea that with lower rates it should provide a support for stocks," said Rick Meckler, partner at Cherry Lane Investments, a family investment office in New Vernon, New Jersey.

The S&P 500 index gained 53.70, or 1.04% to 5,240.03. The Nasdaq Composite gained 166.77 points, or 1.03%, to 16,366.86. The Dow Jones Industrial Average rose 294.39 points, or 0.76%, to 38,997.66.

Treasury yields rose, partly in reaction to a rebound in the U.S. ISM services index to 51.4 for July, but in line with the shift across other markets on Tuesday. Benchmark 10-year notes were up 7.5 basis points to yield 3.8578%.

Market expectations the Fed would cut rates by 50 basis points at its September meeting remained intact, with futures, opens new tab implying a 85% chance of such a move.

The market has around 100 basis points of easing priced in for this year, and a similar amount for 2025.

In precious metals , gold rose 0.2%, holding in positive territory after a 1.5% decline the day before. It was last at $2,412 an ounce .

Oil prices were volatile as well. Concern about conflict in the Middle East potentially widening, which would normally boost the price, was partly offset by worries about the excessive volatility across the broader market.

Brent crude futures were last flat at $76.63 a barrel, having hit a seven-month low of $75.05 the day before.

This article originally appeared on USA TODAY: Stocks bounced back Tuesday, a day after a global plunge