U.S. stocks rallied Monday, reversing last week’s losses as weak job data boosted hopes for a Federal Reserve rate cut.

Dow Jones surged 507 points (+1.2%)

S&P 500 rose 1.3%

Nasdaq jumped 1.8%, led by tech stocks

Why the Rebound?

A weaker-than-expected July jobs report just 73,000 jobs added and unemployment rising to 4.2% increased expectations that the Fed could cut rates in September. Markets are now pricing in an 80–87% chance of a cut.

Notable Movers

Idexx Laboratories: +27% (strong earnings)

Wayfair: +12%, Tesla: +3% (CEO award boost)

Palantir Technologies: +4% (AI optimism)

Tyson Foods: +2.6%

Berkshire Hathaway: -3.8% (weaker earnings)

What’s Next

Key earnings from AMD, Disney, Eli Lilly, and McDonald’s, along with economic reports, will guide markets this week. Investors are also monitoring any developments on trade policy.

Takeaway
Stocks bounced back as poor jobs data raised hopes of a Fed rate cut. While optimism returned, the market’s direction will depend on upcoming earnings and economic indicators.