U.S. stocks edged higher on Monday as investors began the week on an upbeat note following last week’s sharp sell-off amid weak jobs data and tariff jitters.
Summary
- Stocks rose on Monday as investors flipped upbeat following the sharp sell-off seen on Aug. 1.
- Dow added 300 points, while S&P 500 and Nasdaq edged higher.
- Global trade and U.S. economy concerns remain.
The Dow Jones Industrial Average was up nearly 300 points, while both the S&P 500 and Nasdaq rose 0.8% and 0.95%, respectively, as Wall Street searched for fresh footing.
Slight gains across the major indices came after equities hit a wall on the first day of August. At the top of the headwinds list were the disappointing U.S. labor data report and uncertainty amid a slew of tariff announcements from President Donald Trump.
Wall Street sell-off worst in months
The benchmark index S&P 500, which had hovered at record highs for much of July, began Aug. on a whimper as panic selling saw it dump over 2% for its worst day since late May.
Meanwhile, the Dow slumped more than 500 points, suffering its worst week since the market downturn in early April. The Nasdaq, which had gained upside momentum from Big Tech earnings, also dropped amid a 2.4% rout on Friday.
Declines across stocks also hit the cryptocurrency market, with Bitcoin (BTC) plummeting to below $114k.
Weak jobs data catalyzed losses
Stocks sold off on Aug. 1 following July’s U.S. monthly jobs report, which came in weaker than expected.
The data didn’t just disappoint but compounded a negative outlook with revisions that showed the Labor Department had sharply downgraded previous months’ numbers. Investors reacted negatively, spooked by signs that the U.S. labor market may not be as strong as previously indicated.
Among key developments following the data release was President Trump’s move to fire the Bureau of Labor Statistics commissioner Erika McEntafer. Reports say Trump could name a new BLS commissioner this week.
Tariffs, earnings in focus
The U.S. economy remains a key focus area for investors. However, the market is also closely watching the Federal Reserve and global trade tensions. While the Fed left interest rates unchanged at its July meeting, bets on a September cut are as high as 90%.
Jeremy Siegel, professor of finance at the University of Pennsylvania’s Wharton School of Business and WisdomTree chief economist, told CNBC’s ‘Squawk Box’ on Monday that the Fed would have cut rates had it had access to the weak jobs data.
Meanwhile, focus on the tariffs front is around the upcoming effective date of Aug. 8 after Trump hit several countries with steep tariffs last week. Eyes are also on U.S.-China talks.
This week will also see several companies release their quarterly reports as earnings season continues. Among those set to report are Palantir and Disney.
Source link