Indexes end up 1%; investors ramp up rate-cut views after weaker payrolls
All three major U.S. stock indexes ended more than 1% higher on Monday as investors sought bargains after the previous session's selloff and increased bets for a September rate cut in the wake of Friday's weaker-than-expected jobs data.
Tesla shares rose after the electric vehicle maker granted CEO Elon Musk 96 million shares worth about $29 billion.
Odds for a September rate cut now stand at about 84%, according to CME Fedwatch. Market participants see at least two quarter-point cuts by the end of this year.
Friday's bleak July jobs data also accompanied steep downward revisions for May and June.
The S&P 500 and Nasdaq had hit a string of record highs recently.
According to preliminary data, the S&P 500 gained 92.06 points, or 1.48%, to end at 6,330.07 points, while the Nasdaq Composite gained 400.43 points, or 1.94%, to 21,050.56. The Dow Jones Industrial Average rose 588.78 points, or 1.35%, to 44,177.36.
Investors were still digesting U.S. President Donald Trump's firing of Bureau of Labor Statistics Commissioner Erika McEntarfer on Friday, accusing her of faking the weak jobs numbers.
Also on Friday, Fed Governor Adriana Kugler unexpectedly resigned, which could open the door for U.S. President Donald Trump to reshuffle the central bank's leadership in his favor.
Trump has been pushing the Fed to cut rates.
Source : Reuters
