**U.S. Stocks Stabilize Amid Decline in Oil Prices**

U.S. stocks found stability on Tuesday, aided by a notable drop in oil prices, easing some of the market's recent pressures. By morning trading, the S&P 500 had risen 0.6%, recovering some losses from the previous session. The Dow Jones Industrial Average saw a modest increase of 30 points, or 0.1%, nearing its record high from the prior week, while the Nasdaq composite climbed 1%.

Despite global markets facing turbulence following erratic movements in China, Wall Street remained resilient. Investor optimism over potential stimulus measures for China's economy quickly turned to disillusionment, causing a 9.4% plunge in Hong Kong's market—the steepest decline since the 2008 financial crisis. In contrast, the slump in oil prices lent support to U.S. equities. Brent crude dropped 3.5%, while U.S. benchmark crude fell 3.7%.

Stability in the bond market also contributed to the steadiness in stocks. Treasury yields showed minimal movement after reaching their highest levels since summer, with the 10-year Treasury yield inching up to 4.05% and the two-year holding steady at 3.99%. Rising Treasury yields typically make investors less inclined to pay premium prices for stocks, but recent robust economic data from the U.S. has mitigated fears of a recession.

Anticipation of economic health has shifted traders' expectations regarding the Federal Reserve's interest rate policies. Reports of stronger-than-expected hiring by U.S. employers have led to reduced speculation that the Fed will implement steep interest rate cuts. At its next meeting, the Fed is now expected to opt for a traditional quarter-point cut rather than the previously anticipated half-point cut, with some experts even considering the possibility of rates remaining unchanged.

Several companies saw notable stock movements. PepsiCo shares rose by 0.6% following a better-than-expected profit report for the latest quarter, although revenue figures fell short. CEO Ramon Laguarta revised the company's revenue growth expectations to a "low single-digit" increase for the year. Conversely, DocuSign experienced an 8.3% surge after being announced as a new addition to the S&P MidCap 400 index, replacing MDU Resources, which transitions to the S&P SmallCap 600.

Oil-and-gas companies experienced declines as they gave back some of their recent gains driven by previous oil price jumps. Chevron's 1.9% fall significantly impacted the Dow's performance.

International market responses were mixed. China's markets reopened with the Shanghai index rising 4.6%, but the Hang Seng index in Hong Kong plummeted. The detail-limited economic measures announced by China's planning agency contributed to these divergent reactions.

Consequently, global companies with significant exposure to China faced declines. Estee Lauder and Wynn Resorts were notably affected, experiencing drops of 4.4% and 4% respectively.