The final session results indicate that the Dow Jones Industrial Average rose 1.34%, the Nasdaq advanced 1.95%, and the broader S&P 500 increased by 1.47%, ending a four-day losing streak.
“There were some bargain hunters on Friday, and as soon as the markets showed signs of recovery today, they jumped back in because no one wants to miss an upward movement,” explained Steve Sosnick of Interactive Brokers to the French news agency AFP.
Steve Sosnick believes that this technical recovery alone can explain Wall Street’s rise, given that no significant economic data was released today and “expectations for Fed rate cuts haven’t changed significantly since Friday.”
The majority of analysts anticipate that the U.S. central bank will cut rates by 0.25 percentage points at its next monetary policy meeting in September, according to the CME monitoring tool.
The reason is a U.S. labor market report that was worse than expected, released on Friday, including a significant downward revision of job creation numbers to levels not seen since the COVID-19 pandemic.
“Given the magnitude of the data released on Friday and how it’s impacting the prices of other important financial assets, it’s quite surprising to see the stock market completely ignoring them,” noted Steve Sosnick.
However, “we have seen stock markets respond strongly to even the slightest buying opportunity before,” emphasized the analyst.
Sosnick also pointed out that “traders and investors have made a lot of money” by setting aside concerns related to tariffs.
The new tariffs by Donald Trump, most of which are set to take effect on Thursday, are “virtually definite” and are not expected to be subject to immediate negotiation, stated U.S. Trade Representative Jamieson Greer in an interview aired Sunday by CBS.
In the stock market, jeans brand American Eagle (up 23.65%, to $13.28) surged, buoyed by Donald Trump’s commendatory remarks about its advertising campaign featuring actress Sydney Sweeney, which is sparking controversy.
“Sydney Sweeney, a registered Republican, has the hottest ad right now,” wrote Donald Trump, adding that thanks to this campaign, the brand’s jeans are “selling like hotcakes.”
Automaker Tesla (up 2.19%, to $309.26) attracted interest after awarding its CEO, Elon Musk, 96 million shares, approximately valued at $29 billion. Musk’s substantial compensation package continues to be the subject of a legal battle.
Chinese search engine giant Baidu (up 1.75%, to $87.64) benefited from the announcement of its plan to launch robotaxis on the U.S. ride-sharing app Lyft in Germany and the United Kingdom in 2026, a move subject to regulatory approval.
