MARKET SNAPSHOT

U.S. stocks rose as investors ramped up bets the Fed will cut interest rates in September. Treasury yields extended declines amid signs of economic cooldown. Oil futures fell after OPEC+ said it will raise output in September. Gold futures rose on the interest rate cut speculation. The U.S. dollar edged higher.

MARKET WRAPS

EQUITIES

Stocks rallied Monday, with last week's worries about the economy giving way to broad dip-buying and rate-cut optimism.

All three major U.S. indexes rose more than 1%, with each notching its largest daily percentage gain since May. The rally was broad-based, encompassing everything from utilities to meme stocks.

The S&P 500 rose 1.5%, while the Nasdaq Composite rose 2%. The Dow Jones Industrial Average climbed 585 points, or 1.3%, after logging its worst weekly performance since April.

Markets in Asia mostly rose.

China's benchmark Shanghai Composite Index ended 0.7% higher. The Shenzhen Composite Index rose 0.8%, and the ChiNext Price Index gained 0.5%.

Hong Kong's Hang Seng Index rose 0.9%.

Japan's Nikkei Stock Average fell 1.2%.

Stocks in Australia were flat, with the S&P/ASX 200 Benchmark Index holding steady.

New Zealand stocks slipped, as the S&P/NZX 50 Index fell 0.4%, the fourth consecutive session of decreases.

COMMODITIES

Oil futures fell for a third consecutive session after OPEC+ said it will lift output by another 547,000 barrels a day in September.

The planned increase fully unwinds the 2.2 million barrels of voluntary production cuts made in November 2023 about a year ahead of the initial timeline.

The decision was the third blow for oil prices after last week's higher than initially expected U.S. tariffs and weaker-than-expected employment report, FxPro's Alex Kuptsikevich said. The OPEC+ decision was "rather bold" given growing fears of a global economic slowdown, he said.

"If OPEC+ really plans to increase its share of the oil market, it may not oppose further price declines," Kuptsikevich said.

WTI settled down 1.5% at $66.29 a barrel and Brent fell 1.3% to $68.76.

Gold futures rose as the speculation around an interest rate cut in September intensifies.

"Markets have grown more confident in a single rate cut by September, and are even pricing in up to 75 basis points of easing before year-end, " said Samer Hasn of XS.com. "This sentiment was triggered by underwhelming July nonfarm payroll and unemployment data."

Gold rose for a second straight session with the probability of a September cut up to over 80%, from 63% a week ago.

Front-month gold rose 0.8% to $3,374.40 a troy ounce.

TODAY'S TOP HEADLINES

Trump Threatens Higher Tariff Rates on India Over Russian Oil

The tariff rate on imports from India will rise "substantially," President Donald Trump wrote on Truth Social Monday.

"India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits," he added.

India, which shipped some $87 billion worth of goods into the U.S. last year and has a trade surplus of nearly $46 billion, is currently facing 25% tariffs for its imports effective Aug. 7.

U.S. Factory Orders Declined in June

Orders from U.S. factories fell in June, declining for two of the past three months, the Commerce Department said Monday.

New orders contracted 4.8% month over month to $611.7 billion in June. Excluding transportation, orders rose 0.4%. Excluding defense, there was a 4.7% decline.

Economists surveyed by The Wall Street Journal were expecting a 4.9% decline in the headline figure.

U.S. Employment Trends Weaken, Underlining Labor-Market Jitters

An index of U.S. employment fell to its lowest point since October last year, as concerns rise about the resilience of the jobs market after large downward revisions to official data.

The Conference Board's Employment Trends Index, or ETI, fell to 107.55 in July from an upwardly revised 108.19 in June, the research group said Monday.

The indicator was published after the U.S. Bureau of Labor Department on Friday reported job growth was 73,000 in July, alongside revisions that cut down the jobs growth originally reported for May and June by a combined 258,000. President Trump dismissed BLS Commissioner Erika McEntarfer on the back of the print.

Trump Seeks Bigger Overhaul at Labor Statistics Bureau, Adviser Says

A chief White House economic adviser said Sunday that President Trump wants his allies placed in the Bureau of Labor Statistics after the agency published a surprisingly dismal jobs report Friday and the president later fired its commissioner.

Kevin Hassett, Trump's National Economic Council director, said on NBC that the firing of BLS commissioner Erika McEntarfer is part of Trump's plan to make further changes to the agency.

"The president wants his own people there, so that when we see the jobs numbers, they are more transparent and more reliable," Hassett said.

Palantir Technologies Hikes Outlook as Profit, Sales Rise

Palantir Technologies boosted its full-year outlook after posting higher profit and revenue in the second quarter, driven by continuing demand for its artificial intelligence products.

The Denver-based company, which sells AI software to manage and analyze large amounts of data, on Monday said it now expects revenue between $4.14 billion to $4.15 billion for the year, up from a prior outlook of $3.89 billion and $3.9 billion.

Analysts polled by FactSet projected total sales of $3.89 billion for the year.

Elon Musk Gets $23.7 Billion Stock Award From Tesla to Stay Focused

Tesla took a "first step" to keep its leader Elon Musk focused on the struggling electric-vehicle maker, awarding the world's richest man one of the biggest-ever stock awards to stick around for at least two years.

Tesla's board approved a stock award for Musk that it tentatively valued at $23.7 billion, which he can claim in two years unless a court rescues his prior, larger stock-option grant. Musk has run Tesla without a pay package since his $50 billion option award was tossed by a court in 2024.

The electric-vehicle maker said its "interim award" of 96 million shares will vest as long as Musk remains on the job as chief executive or under another executive title heading product development or operations, according to a securities filing. It described the award as a "first step, good faith payment" to keep the world's richest man engaged.

ON Semiconductor Results Show Stabilizing End Markets

ON Semiconductor posted lower profit and revenue in the second quarter, but the results stayed roughly in line with Wall Street expectations as end markets stabilize.

The semiconductor maker on Monday posted a profit of $170.3 million, or 41 cents a share, in the second quarter, compared with $338.2 million, or 78 cents a share, a year earlier.

Stripping out certain one-time items, adjusted per-share earnings were 53 cents, which was what analysts had forecast, according to FactSet.

Expected Major Events for Tuesday

00:30/JPN: Jul Japan Services PMI

00:30/HK: Jul Hong Kong Whole Economy PMI

00:30/SIN: Jul Singapore Whole Economy PMI

01:00/PHI: Jul CPI

01:30/AUS: Jul ANZ-Indeed Job Ads

01:45/CHN: Jul China Services PMI

02:00/AUS: Jul VFACTS vehicle sales

04:00/INA: 2Q GDP

05:00/SIN: Jun Retail Sales

08:20/TAI: Jul International Reserves

22:45/NZ: 2Q Labour Cost Index (Salary & Wage Rates)

22:45/NZ: 2Q Quarterly Employment Survey

22:45/NZ: 2Q Household Labour Force Survey

23:00/AUS: Jul Australian PMI

23:00/AUS: Jul Australian PCI

23:30/JPN: Jun Provisional Labour Survey - Earnings, Employment & Hours Worked

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This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

August 04, 2025 16:58 ET (20:58 GMT)

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