Most stock markets in the Gulf rebounded on Tuesday as comments from the Federal Reserve officials soothed investor nerves, following the previous session’s global sell-off on fears of a possible U.S. recession.

San Francisco Federal Reserve Bank President Mary Daly on Monday said it is too soon to know if the July jobs report signals a slowdown or real weakness, but it is “extremely important” for the central bank to prevent the labour market from tipping into a downturn.

Market expectations that the Fed would cut interest rates by 50 basis points at its September meeting remained intact, with futures implying a 71% chance of such an outsized move.

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

Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed’s decisions as most regional currencies are pegged to the U.S. dollar.

Saudi Arabia’s benchmark index advanced 2.1%, with aluminium products manufacturer Al Taiseer Group jumping 7.1%.

Gulf markets slide on US recession fears, regional tensions

Among other gainers, Saudi Aramco rose 2.2%, after reporting a second-quarter net profit of 109.01 billion riyals ($29.04 billion), beating a company-provided median estimate from 15 analysts of $27.7 billion.

Dubai’s main share index jumped 2.4%, clawing-back some of its losses from Monday when it fell more than 4%. Blue-chip developer Emaar Properties advancing 4.9%.

In Abu Dhabi, the index was up 1.4%.

The Qatari benchmark, however, slipped 0.5%, with the Gulf’s biggest lender Qatar National Bank losing 1.4%.