U.S. stock futures are showing a notable rebound on Monday, August 4, 2025, indicating a potential recovery for major indexes after a challenging end to last week. The positive premarket sentiment comes despite lingering concerns over new tariffs and a weaker-than-expected July jobs report that has fueled speculation about the Federal Reserve's next policy moves.
Premarket Activity and Futures Movements
As of early Monday morning, futures for the Nasdaq 100 (NDX) were up 0.73%, while Dow Jones Industrial Average (DJIA) futures gained 0.62%, and S&P 500 (SPX) futures rose 0.63%. This upward movement in futures suggests a "buy-the-dip" mentality among investors, aiming to claw back some of the steep losses experienced on Friday. The S&P 500 E-minis were up 0.59%, Nasdaq 100 E-minis climbed 0.78%, and Dow E-minis saw a 0.54% increase in premarket trading.
Last Friday, the major indexes experienced significant declines following a disappointing July jobs report and the announcement of new tariffs on U.S. trading partners. The S&P 500 closed down 1.60%, marking its worst performance since the end of May and a 2.4% weekly decline. The Dow Jones Industrial Average fell 1.23% on Friday, recording its steepest weekly performance since April with a 2.9% drop. The Nasdaq Composite also saw a sharp decline of 2.24% on Friday, ending the week down 2.2%. All three indexes finished deeply in negative territory for the week, halting a multi-week rally. Historically, August has often been one of the weakest months for major U.S. indexes.
Upcoming Market Events and Economic Data
Investors are closely monitoring upcoming economic data and policy decisions that could significantly impact market direction. Today, Monday, August 4, the U.S. Factory Orders report for July is expected to be released, which provides insights into the health of the manufacturing sector and future production activity. Experts predict a 5.2% drop compared to June, reflecting ongoing sector challenges. Additionally, data on Total Vehicle Sales for July will be released, with forecasts suggesting a slight increase to 16 million vehicles sold.
The weaker-than-expected July jobs report, which showed a steady unemployment rate of 4.2%, has diminished the likelihood of an interest rate hike at the Federal Reserve's September FOMC meeting. In fact, the dismal jobs data has boosted bets on a Fed rate cut to support the economy, with futures markets showing 75% odds of a September rate cut and over 80% odds priced in for a rate reduction next month. President Trump's recent actions, including the firing of the head of the Bureau of Labor Statistics and a Federal Reserve Governor stepping down, further underscore the political pressure on the Fed to potentially lower rates.
Looking ahead to the rest of the week, key U.S. economic data includes the ISM Non-Manufacturing PMI and weekly initial jobless claims. Globally, the economic calendar features the Bank of England's (BoE) interest rate decision on Thursday, August 7, and various inflation and trade data from other major economies.
Major Stock News and Corporate Announcements
Several major companies are making headlines today, influencing individual stock movements and broader market sentiment.
Earnings Reports:
Defense contractor Palantir Technologies (PLTR) is scheduled to report earnings after the market closes today. Shares of the data analytics software provider were up more than 2% in premarket trading.
Tyson Foods (TSN) also reported its third-quarter 2025 results today, with sales of $13,884 million, up 4.0% from the prior year. Adjusted operating income increased by 3%, while adjusted EPS was up 5% to $0.91.
Other companies expected to report earnings before the bell today include Waters Corporation (WAT), which announced sales of $771 million, exceeding guidance, and a 12% growth in non-GAAP EPS to $2.95.
Company-Specific News:
Tesla (TSLA) shares climbed more than 2% in premarket trading after the company approved a $30 billion stock award for CEO Elon Musk as part of a long-term pay plan.
Amazon (AMZN) advanced 1.8% in premarket trading, recovering some ground after shedding 8% in the previous session due to disappointing cloud-computing growth highlighted in its earnings report.
Workers at Boeing (BA)'s St. Louis-area defense factories are set to strike at midnight Monday after union members rejected their latest contract offer. This marks the first strike in nearly 30 years for Boeing's defense union and could amplify financial pressure on its defense and space division. Boeing shares slipped 0.5% in premarket trading.
UBS Group AG (UBS) fell more than 2% in premarket trading after the Swiss banking group agreed to pay $300 million to settle a mortgage-related case in the U.S.
Spotify (SPOT) saw a 3.68% increase in premarket trading following news of price hikes.
Replimune (REPL) shares plunged 34.87% after the FDA rejected its melanoma therapy due to flawed trial design.
Canon Inc. (CAJ) announced today that it has been named a Supplier Engagement Leader in the 2024 CDP Supplier Engagement Rating for the fourth time since 2022, recognizing its efforts in working with suppliers to respond to climate change.
Toyota Motor Corporation (TM) announced the addition of 12 new "Inventors" to its "Toyota Woven City" project, a real-world test course for mobility in Japan, ahead of its official launch in September.
Overall, Monday's premarket activity suggests a cautious optimism as investors weigh the potential for Federal Reserve rate cuts against ongoing economic uncertainties and geopolitical developments.
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.