U.S. stock markets and indexes rose on Tuesday, stabilizing after the previous session’s losses, as a strong payrolls report raised doubts about the Federal Reserve’s plans to sharply cut interest rates.

Bets on a smaller rate cut caused Wall Street to post steep losses on Monday, with the S&P 500 down about 1%, the NASDAQ Composite down 1.2%, and the Dow Jones Industrial Average losing nearly 400 points, or 0.9%, from record highs.

Rising Treasury yields also weighed, with the benchmark 10-year Treasury yield above 4% on Tuesday, while the two-year yield hovered around its highest level in more than a month.

Risk sentiment was similarly affected by fears of an escalation of conflict in the Middle East, as well as concerns over another major hurricane expected to make landfall in the U.S. this week.

Federal Reserve Officials Set to Speak

Tuesday will see little economic data that could affect interest rate expectations, with the Fed’s September meeting minutes due on Wednesday and the consumer price index for September on Thursday.

Nonetheless, the week is full of Fed speakers, including Boston Fed President Susan Collins and Atlanta Fed President Raphael Bostic.

Traders estimate an 80.9% chance that the Fed will implement a 25 basis point rate cut in November and a 19.1% chance of no rate cut, according to CME FedWatch.

Traders were also pricing in a higher terminal rate for the Fed’s current easing cycle.

The Fed maintained its rates in September, signaling the start of a potential easing cycle. However, it continues to indicate that future rate cuts will depend on incoming data.

Honeywell Considers Spinning Off a Unit – WSJ

In corporate news, Honeywell (HON) shares rose 2% before the market opened after the Wall Street Journal reported that the conglomerate is considering spinning off its advanced materials business.

Alphabet (GOOG) will be in the spotlight after a U.S. judge ordered its Google unit to reconfigure its Android operating system to allow rivals to create their own app marketplaces and payment options, which is a setback for the tech giant’s defense against antitrust lawsuits.

Third-quarter earnings season will likewise begin later this week, with major banks reporting.

Oil Prices Lose Ground

Oil prices declined on Tuesday as traders took profits after a sharp rise triggered by concerns that an all-out war in the Middle East could impact oil supplies.

Weak reactions to comments from the state economic planner of China, the world’s largest oil importer, also weighed on crude.

The American Petroleum Institute will release the latest reports on U.S. crude inventories, with analysts estimating that stockpiles will increase by 1.9 million barrels.