Wall Street futures began to recover on Monday, as expectations of Federal Reserve interest rate cuts strengthened following last week’s unexpectedly weak employment data.
As of 5:44 p.m. ET, Dow E-minis were up 294 points (0.67%), S&P 500 E-minis were up 43.5 points (0.69%), and Nasdaq 100 E-minis were up 184.75 points (0.81%).
On Friday, Wall Street’s main indexes, especially The S&P 500 experienced its biggest daily drop in two months. This was due to new US tariffs and July employment data falling far below expectations. This weakened the labor market and strengthened the likelihood of a rate cut in September. According to the CME FedWatch tool, the probability of a rate cut in September has risen to 80%, a significant increase from 63.1% last week. Trump reiterated his threat to dismiss Chairman Jerome Powell last week following the Fed’s interest rate decision. The Fed’s strained relationship with the White House has become even more complicated following the early resignation of Governor Adriana Kugler. “Trump’s new governor appointment could be a harbinger of a new chairmanship following Powell’s departure,” said Kathleen Brooks, XTB’s research director. Trade Wars and New Tariffs: Trump’s decision to impose new import tariffs has been announced, targeting trading partners such as Canada, Brazil, India, and Taiwan. It was stated that these tariffs would not be lifted through negotiations and would remain in effect for a longer period. Today, US factory orders data will be released, and other data such as unemployment claims and business activity will be monitored throughout the week. Atlanta Fed President Raphael Bostic’s speech will also be closely watched later in the week.
Technology and Other Sector Companies Announce Earnings
Following last week’s earnings from big tech companies, companies like Palantir (PLTR), Eli Lilly (LLY), and Disney (DIS) will release their earnings reports this week.
When the earnings reports of 330 companies in the S&P 500 are examined, 80.6% exceeded analyst expectations, marking the highest exceedance since the third quarter of 2023. recorded the rate.
Key Movements
Joby Aviation (JOBY) rose 2.5% in premarket trading after news that it is considering acquiring Blade Air Mobility, according to Bloomberg. Blade Air shares gained 17.2%.
