US stocks rebound on rate-cut bets
Investors were looking for bargains following a sell-off on Friday. Photo: Reuters
All three major US stock indexes scored their biggest daily percentage increases since May 27 on Monday as investors sought bargains after the previous session's selloff and ramped up bets for a September interest rate cut after Friday's weaker-than-expected jobs data.
Tesla shares rose 2.2 percent after the electric vehicle maker granted CEO Elon Musk 96 million shares worth about US$29 billion.
Friday's selloff followed bleak July jobs data that was accompanied by steep downward revisions for May and June.
"Today is just a little bit of dip-buying. It does show a pretty healthy sign of folks out there looking for an opportunity to get in," said Mike Dickson, head of research and quantitative strategies at Horizon Investments in Charlotte, North Carolina.
"It's a little concerning in the sense the labour market... definitely appears to be weaker than people expected. A bit of an offset to that is the renewed rate cut expectations. There's a high probability we're getting a September cut."
Odds for a September rate cut now stand at about 84 percent, according to CME Fedwatch. Market participants see at least two quarter-point cuts by the end of this year.
The Dow Jones Industrial Average rose 585 points, or 1.3 percent, to 44,173, the S&P 500 gained 91 points, or 1.5 percent, at 6,329 and the Nasdaq Composite climbed 403 points, or 2 percent, to 21,053. (Reuters)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
RTHK
2 hours ago
- RTHK
Trump signals tariffs for pharma, chips
Trump signals tariffs for pharma, chips Donald Trump said tariffs on imported pharmaceuticals could ultimately reach 250 percent. Photo: Reuters US President Donald Trump has signalled that fresh tariffs on imported pharmaceuticals and semiconductors could be unveiled within the coming week, amid a cascade of incoming duties. Governments around the world are bracing as new waves of US tariffs are due to take effect this week, first on many Brazilian products on Wednesday and then on dozens of other economies a day later. Trump's sweeping plans have sparked a flurry of activity as leaders seek to avert the worst of his threats, with Swiss officials heading to Washington on Tuesday in a last-minute push to avoid punitive duties. But the US president appears set to widen his trade wars. Trump told CNBC that upcoming tariffs on imported pharmaceuticals could reach 250 percent, while adding that he plans for new duties on foreign semiconductors soon. "We'll be putting (an) initially small tariff on pharmaceuticals, but in one year, one-and-a-half years, maximum, it's going to go to 150 percent," Trump said. "And then it's going to go to 250 percent because we want pharmaceuticals made in our country." Trump also said that Washington will be announcing tariffs "within the next week or so." He added: "We're going to be announcing on semiconductors and chips." Trump has set out varying tariff rates for dozens of economies after imposing a 10-percent levy on almost all trading partners in April. But these broad duties taking effect Thursday exclude products like pharmaceuticals, steel, aluminium and lumber, which are being separately targeted by sector. This means that although the 39-percent tariff Swiss leaders seek to avoid come Thursday excludes pharmaceuticals, Trump's plans for a steep levy on such imports will likely remain a point of contention in any talks. Pharmaceuticals represented 60 percent of Swiss goods exports to the United States last year. Outside of Switzerland, most products from the European Union face a 15 percent tariff starting on Thursday, after Washington and Brussels struck a deal to avoid higher levies. But Trump warned Tuesday that the EU could see its tariff level surge again if it did not fulfil obligations under their recent pact. Some imports from Canada are also targeted by tariffs, although Prime Minister Mark Carney stressed Tuesday that more than 85 percent of trade between the North American neighbours remains tariff-free under existing exemptions. Besides probing pharmaceuticals and chips imports, Trump has already imposed steep duties of 50 percent on steel and aluminium, alongside lower levies on autos and parts. In the same CNBC interview Tuesday, Trump said he expects to raise the US tariff on Indian imports "very substantially over the next 24 hours" due to the country's purchases of Russian oil. His pressure on India comes after signaling fresh sanctions on Moscow if it did not make progress by Friday towards a peace deal with Kyiv. US envoy Steve Witkoff will meet on Wednesday with Russian leadership in Moscow. (AFP)
RTHK
2 hours ago
- RTHK
Wall Street retreats ahead of new tariff hikes
Wall Street retreats ahead of new tariff hikes A separate set of tariff hikes goes into force on dozens of economies later this week. Photo: Reuters Wall Street stocks retreated on Tuesday as markets monitored ongoing trade talks ahead of new tariff hikes set to take effect later this week. US stocks initially looked poised to extend Monday's rally, but soon tumbled into negative territory. "We're struggling for direction right now," said Adam Sarhan of 50 Park Investments. "After a big move up over the last few weeks, it's perfectly normal and healthy to see the market consolidate or go sideways a little bit." The Dow Jones Industrial Average finished down 0.1 percent at 44,111. The broad-based S&P 500 dropped 0.5 percent to 6,299, while the tech-rich Nasdaq Composite Index shed 0.7 percent to 20,916. US President Donald Trump told CNBC he plans fresh tariffs on imported pharmaceuticals and semiconductors. The statement comes before a separate set of tariff hikes goes into force on dozens of economies later this week. Swiss officials travelled to Washington on Tuesday to try to strike a last-minute deal. Sarhan said investors are adjusting to a weakening economic outlook after last week's July jobs report pointed to slowing in the labour market. On the positive side, "a weaker economy could mean more rate cuts from the Fed," Sarhan said. Among individual companies, Palantir Technologies jumped 7.8 percent after reporting its first quarter with more than US$1 billion in revenues. The data analysis and artificial intelligence company also raised its full-year revenues forecast. Pfizer was another big winner after earnings as the drugmaker reported a big increase in profits to US$2.9 billion behind higher sales of Covid-19 products and lower expenses. (AFP)
RTHK
3 hours ago
- RTHK
Wall Street retreats ahead of new tariff hikes
Wall Street retreats ahead of new tariff hikes A separate set of tariff hikes goes into force on dozens of economies later this week. Photo: Reuters Wall Street stocks retreated on Tuesday as markets monitored ongoing trade talks ahead of new tariff hikes set to take effect later this week. US stocks initially looked poised to extend Monday's rally, but soon tumbled into negative territory. "We're struggling for direction right now," said Adam Sarhan of 50 Park Investments. "After a big move up over the last few weeks, it's perfectly normal and healthy to see the market consolidate or go sideways a little bit." The Dow Jones Industrial Average finished down 0.1 percent at 44,111. The broad-based S&P 500 dropped 0.5 percent to 6,299, while the tech-rich Nasdaq Composite Index shed 0.7 percent to 20,916. US President Donald Trump told CNBC he plans fresh tariffs on imported pharmaceuticals and semiconductors. The statement comes before a separate set of tariff hikes goes into force on dozens of economies later this week. Swiss officials travelled to Washington on Tuesday to try to strike a last-minute deal. Sarhan said investors are adjusting to a weakening economic outlook after last week's July jobs report pointed to slowing in the labour market. On the positive side, "a weaker economy could mean more rate cuts from the Fed," Sarhan said. Among individual companies, Palantir Technologies jumped 7.8 percent after reporting its first quarter with more than US$1 billion in revenues. The data analysis and artificial intelligence company also raised its full-year revenues forecast. Pfizer was another big winner after earnings as the drugmaker reported a big increase in profits to US$2.9 billion behind higher sales of Covid-19 products and lower expenses. (AFP)
