Equities surged on Monday as market participants sought to recover the significant declines experienced in the prior session, which were driven by apprehensions regarding the U.S. economy and the announcement of additional tariffs by the Trump administration. The Dow Jones Industrial Average experienced a significant increase of 585.06 points, representing a rise of 1.34%, concluding at 44,173.64 and effectively reversing the substantial sell-off observed on Friday. The S&P 500 increased by 1.47%, concluding at 6,329.94, thereby breaking a four-day streak of losses and achieving its most favorable performance since May. The Nasdaq Composite experienced a notable increase of 1.95%, concluding the session at 21,053.58.
“Today is somewhat of a bounce-back day,” remarked Sam Stovall, chief investment strategist at CFRA Research. “Equities often experience a rebound following a decline, which is the current situation.” He added, “We have to wait and see what happens tomorrow, because there could be a possibility that investors think, ‘You know what, we really need to take some money off the table to digest some of these gains,’” he added. Equities experienced a decline on Friday following a jobs report that fell short of expectations, which included significant revisions to the employment data for May and June. Shortly following the announcement, President Donald Trump dismissed the director of the Bureau of Labor Statistics. Trump subsequently indicated that he would be appointing a new BLS commissioner in the near future.
Concerns regarding Trump’s newly adjusted tariff rates have added to market volatility. Last week, Trump enacted an executive order that revised his “reciprocal” tariffs on a variety of U.S. trading partners, including nations from Syria to Taiwan, with adjusted duties spanning from 10% to 41%. In light of a sparse economic data release this week, market participants will be closely monitoring any trade advancements between the U.S. and China, following the recent meeting of senior officials from both nations in Stockholm, Sweden, last week. Treasury Secretary Scott Bessent indicated on Thursday that “we have the makings of a deal.”
Market participants are anticipating forthcoming earnings announcements scheduled for this week. Palantir is scheduled to release its results after the market closes on Monday, while AMD is expected to report on Tuesday. The market is preparing for a month that is anticipated to be historically weak. According to the Stock Trader’s Almanac, August ranks as the most unfavorable month for the Dow Jones Industrial Average since 1988, while it stands as the second least favorable for both the S&P 500 and Nasdaq Composite.S&P 500 ends four-day losing streak