Dow Jones and S&P 500 rise on bets on US rate cut

• Dow Jones rises 500 points on post-employment relief
• S&P 500 and Nasdaq advance after negative week
• Investors Bet on Fed Rate Cut

On Monday, August 4, 2025, the U.S. stock market opened the week with a significant gain. The Dow Jones Industrial Average rose more than 500 points, a 1,3% gain. The S&P 500 also rose 1,4%, while the Nasdaq posted the biggest gain of the day, with a 1,7% gain, driven by technology companies.

The recovery follows a sharp selloff last Friday, when major indexes ended their worst week in months. The downturn was intensified by the release of a weaker-than-expected July jobs report, with downward revisions to previous data, raising doubts about the strength of the labor market.

The political backlash was immediate. U.S. President Donald Trump fired the commissioner of the Bureau of Labor Statistics and promised to appoint a new head of the agency responsible for reporting jobs.

In monetary policy, the Federal Reserve held interest rates steady for the fifth consecutive meeting, but the weak labor market has increased expectations of a cut. Currently, nearly 90% of investors are betting on a rate cut at the meeting scheduled for September.

Trade tensions also remain on the radar. Updated tariffs imposed by the U.S. government, which come into effect this week, range from 10% to 41% and affect a wide range of countries, heightening inflation fears.

In yet another measure with international repercussions, Trump declared that he will significantly increase tariffs on India, pressuring the country to stop purchasing Russian oil, claiming that it would be indirectly supporting Russia's war effort.

In the corporate sector, Tesla shares rose after reports that CEO Elon Musk had received a package of 96 million shares, estimated at around US$29 billion, reinforcing market interest in technology companies.

In the cryptocurrency market, Bitcoin is trading at US$115.205, up 1% this Monday.