U.S. stock markets staged a robust rebound on Monday, August 4, 2025, recovering significantly from a sharp sell-off experienced last Friday. Optimism surrounding potential Federal Reserve interest rate cuts, fueled by recent weak jobs data, combined with a generally strong corporate earnings season, propelled major indexes higher. The rebound signaled a "buy the dip" mentality among investors, despite lingering concerns over tariffs and a weakening economy.
Market Performance Recap
Today's trading saw a strong reversal from Friday's downturn, which was triggered by a dismal jobs report and new tariff concerns. The Dow Jones Industrial Average (DJIA) climbed significantly, rising 1.3%, or nearly 600 points, to close near its session high. Similarly, the S&P 500 (SPX) added 1.5%, snapping a four-day losing streak and marking its best day since May. The tech-heavy Nasdaq Composite (IXIC) led the rally, jumping 2% and also closing near its highs for the session. Earlier in the day, the S&P 500 had gained 1.35% to reach 6322 points, while the Nasdaq 100 saw a 1.5% increase. This rebound followed a Friday where the S&P 500 declined 1.6% to 6,238.01 points, and the Nasdaq fell 2.2% to 20,650.13 points, recording its biggest single-day decline since April 21. The fear gauge, CBOE Volatility Index (VIX), was up 21.89% on Friday, but today's rally indicates a shift in sentiment.
Sector-wise, technology and consumer discretionary stocks, which were among the worst performers on Friday, saw a strong recovery today. Bank stocks, which took a hit on Friday due to concerns about a slowing economy impacting loan growth, might also see some relief.
Upcoming Market Events
The market's focus remains keenly on upcoming economic data and policy decisions, particularly from the Federal Reserve. The unexpectedly weak jobs report released last Friday, which showed job growth significantly lower than predicted and substantial downward revisions to prior months, has intensified expectations for an interest rate cut by the U.S. central bank. Market participants are now pricing in an 86.5% probability of a 25-basis-point rate cut in September, a significant jump from 37.7% just last Thursday. This week's economic calendar is relatively light, but investors will be monitoring U.S. factory orders data for June, which was released today, and upcoming trade data. The Bank of England is also expected to further lower its policy rate at its August meeting later this week.
Major Stock News and Developments
Several individual stocks made headlines today with significant movements and corporate announcements:
- Nvidia (NVDA) and AMD (AMD) led a broader rally in the semiconductor sector, with Nvidia gaining nearly 4%.
- Tesla (TSLA) advanced more than 2.2% after announcing a controversial new executive compensation plan for CEO Elon Musk.
- Amazon (AMZN) shares, which declined 8% on Friday after disappointing quarterly cloud revenue, were down 1% today, adding to Friday's big decline.
- Microsoft (MSFT) and Alphabet (GOOGL, GOOG) also saw gains, following strong results in their cloud units reported last week.
- Palantir Technologies Inc. (PLTR) is highly anticipated to report its second-quarter results after the market close today. Analysts expect adjusted earnings per share of $0.08, a 166.67% increase year-over-year.
- Wayfair Inc. (W) jumped 12.3% after reporting strong second-quarter results, with revenue growth and profitability reaching their highest levels since 2021.
- IDEXX Laboratories (IDXX) soared 27.5% after reporting better-than-expected second-quarter results and raising its 2025 profit and revenue forecasts.
- ONEOK, Inc. (OKE) announced higher second-quarter 2025 results and affirmed its full-year financial guidance ranges.
- ON Semiconductor (ON) was the worst-performing stock in the S&P 500, sinking after its CEO warned customers are being "cautious" and sales slid. The company reported second-quarter adjusted earnings per share that matched estimates, but revenue fell 15% year-over-year.
- Tyson Foods (TSN) climbed 3.8% after delivering a bigger profit for the latest quarter than analysts expected.
- Spotify (SPOT) rose over 7% after announcing it would raise prices.
- CommScope (COMM) soared 86.3% after reaching a deal to sell its connectivity and cable business to Amphenol for $10.5 billion in cash.
Post-Market Earnings Announcements
As the market closed, investors turned their attention to companies scheduled to release earnings after hours. Today, Palantir Technologies Inc. (PLTR) is among the key companies reporting its second-quarter results. Other companies expected to report after hours on August 4, 2025, include Vertex Pharmaceuticals Incorporated (VRTX), Williams Companies Inc. (WMB), Axon Enterprise Inc. (AXON), Simon Property Group Inc. (SPG), OKE, Diamondback Energy Inc. (FANG), SBA Communications Corp. (SBAC), Equity Residential (EQR), Corebridge Financial Inc. (CRBG), and Coterra Energy Inc. (CTRA). These reports will be closely scrutinized for their impact on individual stock performance and broader market sentiment in tomorrow's trading session.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.