Last week's U.S. non-farm payroll data showed clear signs of economic deceleration, with markets betting that the Federal Reserve will implement rate cuts to rescue the economy. U.S. stock futures rebounded modestly on Monday, European markets recovered slightly, and Asian markets stabilized.

Additionally, Federal Reserve Governor Kugler announced his resignation on Friday despite his term not being completed, creating conditions for Trump to install rate cut supporters within the Fed. Meanwhile, Trump fired U.S. Bureau of Labor Statistics Director Erika McEntarfer just hours after the non-farm payroll data was released. Trump will announce new appointments for Fed Governor and Bureau of Labor Statistics Director in the coming days, and these two key appointments could reshape the economic policy agenda for his remaining term.

Trump imposed a 39% tariff on Switzerland on the country's national day, causing Swiss people to "break down." Swiss stocks fell nearly 2% during trading, and the Swiss franc dropped over 0.5%. U.S. economic slowdown weakened expectations for Bank of Japan rate hikes, with Japanese stocks falling over 1% and banking stocks leading the decline. Among other assets, U.S. Treasury yields and the dollar index rose slightly, spot gold retreated, and crude oil advanced.

Key asset movements:

U.S. stock futures rose modestly, with S&P 500 futures gaining over 0.5%, attempting to recover Friday's heavy losses. European stocks opened collectively higher, with the Euro Stoxx 50 index opening up 0.6%, Germany's DAX index up 0.3%, the UK's FTSE 100 up 0.3%, and France's CAC 40 up 0.5%. The Nikkei 225 index closed down 1.2%. Japan's Topix index closed down 1.1%. South Korea's KOSPI closed up 0.9%. Swiss stocks reopened and fell 1.9% due to tariff impact. U.S. Treasury yields rose broadly, with the benchmark 10-year Treasury yield up over 2 basis points. The dollar index rose over 0.2%, the yen fell over 0.3%, the euro dropped over 0.2%. The Swiss franc declined over 0.5%. Spot gold fell slightly by 0.2% below $3,360, while spot silver rose over 0.4%. WTI crude rose over 0.5%, Brent crude gained over 0.4%, as OPEC+ ended its previous series of substantial production increases.

S&P 500 futures rose over 0.5%, attempting to recover Friday's heavy losses In equity markets, Nasdaq 100 futures gained over 0.6%, S&P 500 futures rose over 0.5%, and Dow futures advanced over 0.3%.

In U.S. pre-market trading, Chinese concept stocks mostly rose, with Bilibili up about 2%, Baidu up about 2%, and XPeng up about 3%. Market expectations for a September Fed rate cut intensified, with overnight swap trading showing over 80% probability of a rate cut. The market has fully priced in another rate cut by year-end, with some observers even anticipating the Fed might cut rates by 50 basis points in one move. Jamie Cox of Harris Financial Group stated: "A September rate cut is a done deal, possibly even a 50 basis point aggressive cut to make up for lost time." Morgan Stanley strategists believe the Fed will eventually pivot to rate cuts, viewing the current pullback as a buying opportunity. The firm maintains a bullish outlook on U.S. stocks for the next 12 months.

European markets recovered slightly, with UK banking stocks leading gains. UK banking stocks performed exceptionally well, receiving significant relief in a key motor finance case. Lloyds Banking Group shares surged over 5%, while Barclays rose nearly 2%. However, Swiss stocks fell after opening. Meanwhile, Trump imposed a punitive 39% export tariff on Switzerland on the country's national day, among the highest globally. Analysts at Swiss asset management firm Vontobel warned that if the U.S. imposes 39% high tariffs on Swiss goods, corporate earnings in related industries will suffer significant hits, potentially triggering manufacturing exodus. Currently, one-fifth of Switzerland's watch and jewelry exports go to the U.S. market. Analysts emphasized that while the entire watch industry may be affected, market impact will vary significantly, with high-end luxury brands expected to show stronger resilience than mid-to-low-end manufacturers. Despite challenges, analysts remain hopeful for a Swiss-U.S. trade agreement, believing tariff levels could drop to the 15% baseline consistent with other countries.

Japanese stocks fell over 1% on Monday, with banking stocks becoming the hardest hit. The Topix Banks index plummeted 3.2%, marking the largest single-day drop since April 11. Analysts noted that uncertain U.S. economic prospects will weaken market expectations for near-term Bank of Japan rate hikes, pressuring banking stocks. Overnight index swaps showed market expectations for a BOJ rate hike before October fell to 36% from 43% on Friday.