US stock markets are starting Monday’s session in the green, rebounding after last week’s sell-off triggered by disappointing labor market data. Futures on the US500 are up 1.15%, the US100 is gaining 1.56%, and the US2000 is rebounding by 0.85%.
Investors have begun pricing in a higher probability of a Fed rate cut in September after the surprisingly weak July jobs report and significant downward revisions for May and June. Political uncertainty has also emerged, as Trump is expected to announce nominations for key economic positions this week, including a Fed board member and the head of the Bureau of Labor Statistics.
In addition to the stock market rebound, one notable effect of these developments is a retreating U.S. dollar, which has already erased the entire post-Fed-decision rally from last Wednesday.
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Create account Try a demo Download mobile app Download mobile appThis week, more earnings reports will be released from the tech sector (including AMD, Palantir, Arista Networks, Uber, and Shopify) as well as from legacy economy names (such as Disney and McDonald’s). U.S. ISM and PMI reports are also due.
US500
The index of the largest U.S. companies is up 1.13% today, almost fully erasing Friday’s losses. The market is once again pricing in a first Fed rate cut as early as September. Risk assets are also being supported by the weakening dollar.
Source: xStation 5
Company news
Joby Aviation (JOBY.US) gains 14% after reports that Joby may acquire Blade Air Mobility (BLDE.US; +30%), giving it access to Blade’s NYC routes and infrastructure. The deal, still unconfirmed, would also boost Joby’s medical logistics reach.
CommScope (COMM.US) gains 80% after Amphenol announced a $10.5B cash deal to acquire CommScope’s CCS unit, expanding its presence in broadband and AI infrastructure.
Spotify (SPOT.US) climbed 7% after announcing a global price hike for its premium plan to €11.99 starting in September, aimed at improving margins after a weak Q2.
Tyson Foods (TSN.US) rose 3.90% after beating FQ3 estimates with $13.9B in revenue (+4% Y/Y) and $0.91 EPS (vs. $0.78 est.).
Lyft (LYFT.US) advanced 2.90% on news of a partnership with Baidu to roll out autonomous vehicles across Europe by 2026.
Replimune (REPL.US) plunged 31.30% after reports that the FDA’s top cancer drug regulator overruled other reviewers and rejected RP1, its lead cancer therapy, causing a major regulatory setback.
Berkshire Hathaway (BRKA.US) dipped 2.60% after a nearly 4% drop in quarterly operating profit, impacted by insurance underwriting weakness and a $3.8B loss on its Kraft Heinz stake. It was the first report since Buffett announced his retirement.
Palantir (PLTR.US) reports Q2 earnings after the close. Analysts expect $0.14 EPS (+56% Y/Y) on $939M revenue (+39% Y/Y).
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