US stocks rebound after Friday selloff amid tariff jitters and soft jobs data
US stocks bounced back at the open on Monday following a sharp sell-off in the previous session, as investors reassessed the impact of weak labor data and newly announced tariffs from the Trump administration.
The rebound comes despite lingering concerns over stagflationary signals in the economy and a mixed finish to the second-quarter earnings season.
The benchmark S&P 500 index gained 0.85%. While the Dow Jones Industrial Average jumped 0.75%. The Nasdaq index gained the most with a 1.21% rise.
On Friday, the Dow Jones tumbled more than 500 points, while the S&P 500 dropped 1.6% and the Nasdaq Composite lost 2.2%.
It marked the worst day for the S&P 500 since May 21, and the steepest one-day decline for the Nasdaq since April 21.
Rebound follows Friday’s sharp declines
Traders were rattled late last week by a weaker-than-expected July jobs report and a fresh round of tariffs from President Donald Trump.
A newly signed executive order updated so-called “reciprocal” tariffs, affecting dozens of US trading partners with new duties ranging from 10% to 41%.
The sweeping changes added to market jitters already elevated by a softer labor market and persistent inflationary pressures.
August seasonality and rate cut hopes in focus
Investors now turn their attention to what is historically a weaker month for equities.
According to the Stock Trader’s Almanac, August is the worst-performing month for the Dow Jones Industrial Average going back to 1988, and the second worst for both the S&P 500 and Nasdaq.
The weaker-than-expected jobs report has also shifted interest rate expectations.
Traders are anticipating reduced odds of a rate cut in September, following the Federal Reserve’s decision last week to hold the benchmark borrowing rate steady for a fifth consecutive meeting.
Stock movers: Wayfair, On Semiconductor, Spotify among standouts
Several individual stocks made notable moves at the open on earnings and corporate news:
Wayfair surged 8.5% after posting second-quarter earnings of 87 cents per share, well above analysts’ estimates of 33 cents. Revenue also topped forecasts at $3.27 billion.
On Semiconductor fell 7.5% after issuing soft Q3 guidance. The company projected earnings of 54 to 64 cents per share, missing estimates at the low end. Revenue guidance also fell short.
Spotify gained 7.4% after announcing price increases for its premium individual subscription in several markets.
Energizer jumped 28% after beating Q3 revenue expectations and raising full-year EPS guidance to a range of $3.55 to $3.65, above consensus.
Berkshire Hathaway slipped nearly 2.55% after reporting a 4% year-over-year decline in Q2 operating profit.
Warren Buffett’s conglomerate also continued to reduce its stock holdings for an 11th straight quarter.
As markets navigate macro headwinds and the final leg of earnings season, investor attention remains sharply focused on incoming economic data and policy signals.
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