The U.S. stock market is showing signs of a rebound this Monday, August 4th, 2025, with major indexes opening higher after a challenging end to last week. Investors are looking to recover from losses driven by concerns over new tariffs and a weaker-than-expected jobs report.
Market Indexes Opening Performance
All three major U.S. stock indices commenced the trading day in positive territory. The S&P 500 (.INX) opened higher, aiming to reverse a four-day losing streak that followed six consecutive days of record highs. Similarly, the Nasdaq Composite (.IXIC) and the Dow Jones Industrial Average (.DJI) also saw gains at the open. This upward movement reflects a market attempting to stabilize after President Trump's executive order imposing higher tariffs on various trading partners and a July jobs report that revealed a weaker labor market than previously known. The S&P 500, specifically, rose to 6275 points, gaining 0.59% from the previous session.
Upcoming Market Events
The economic calendar for the week is relatively light, but the earnings season remains active with several significant companies slated to report. Investors will be closely watching for economic data releases on the U.S. trade deficit, productivity, consumer credit, and services-sector sentiment. These data points will provide further insight into the health of the economy amidst ongoing discussions about tariffs and potential interest rate adjustments.
Of particular interest are remarks from Federal Reserve officials, including San Francisco Federal Reserve President Mary Daly and St. Louis Fed President Alberto Musalem. Following last week's decision by the Federal Reserve to keep interest rates unchanged, and a jobs report that increased expectations for a rate cut, any commentary from Fed members will be scrutinized for clues on future monetary policy. Markets are nearly pricing in a September Fed rate cut, with over 63 basis points of easing expected by year-end.
Major Stock News and Developments
Several prominent companies are making headlines today with significant corporate announcements and stock movements:
Tesla (TSLA): Shares of the electric vehicle giant rallied in early trading after the company's board of directors approved a substantial restricted stock award of 96 million shares to CEO Elon Musk. This 2025 CEO Interim Award is contingent on regulatory approval and Musk remaining in a senior leadership role. The award, valued at approximately $29 billion based on Friday's closing price, aims to incentivize Musk's continued leadership, especially as Tesla shifts focus towards artificial intelligence and robotics.
Microsoft (MSFT): The software behemoth announced a strategic partnership with Thrive Global, integrating a science-backed behavior change platform into Microsoft Teams. This initiative aims to enhance employee well-being globally. Microsoft's stock opened at $524.11 today, with a market capitalization of $3.90 trillion. The company recently reported strong quarterly earnings, topping analyst estimates with revenue up 18.1% year-over-year. Microsoft, along with other tech giants, is heavily investing in AI infrastructure, contributing to an estimated $400 billion in AI spending across Big Tech.
Nvidia (NVDA): Nvidia's stock saw a rise in premarket trading. The company is reportedly in talks to invest in AI infrastructure provider Vast Data, a funding round that could value the startup at up to $30 billion. This move aligns with Nvidia's continued dominance in the AI chip market, driven by surging demand for data centers. However, Nvidia faces increasing competition in China, with analysts predicting a drop in its AI chip market share due to the rise of local chipmakers. Nvidia's stock opened at $173.72 today.
Apple (AAPL): The iPhone maker recently reported strong quarterly earnings, beating analyst consensus estimates for both EPS and revenue. Despite this, some institutional investors have adjusted their holdings in Apple. Apple is also facing a securities fraud class action lawsuit concerning alleged misrepresentations regarding iPhone 16 sales due to the integration timeline of advanced AI-based Siri features.
Boeing (BA): Boeing is facing a significant labor disruption as 3,200 workers from its defense unit, represented by IAM Local 837, initiated a strike on Monday, August 4th, after rejecting a contract offer. This strike, the first at Boeing's St. Louis-area defense facilities since 1996, could impact critical defense programs. Despite this, Boeing recently delivered its strongest quarterly performance in years, slashing losses and increasing aircraft deliveries. The company aims for positive free cash flow by the fourth quarter.
Pfizer (PFE): The global biopharmaceutical company is set to announce its earnings results tomorrow, August 5th. Analysts are expecting a modest increase in revenue, while adjusted earnings are projected to be $0.57 per share. While Pfizer has a strong record of beating EPS estimates, its stock has underperformed the S&P 500 year-to-date. Pfizer's shares have recently edged higher, reflecting renewed investor confidence in the broader healthcare sector.
Starbucks (SBUX): Starbucks is set to introduce self-ordering kiosks at high-traffic U.S. locations, particularly airports, as a "big priority" for its fourth fiscal quarter. This initiative aims to alleviate long customer queues and improve efficiency. Despite recent efforts and modest improvements in China and operating margins, Starbucks continues to face headwinds, with some analysts maintaining a "Hold" rating due to ongoing operational challenges and an elevated valuation. The company recently reported a quarterly earnings miss, though revenue saw an increase.
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.