Risk Assets Rebound as Markets Start the Week on a Positive Note

Market Recap: Risk Assets Rebound After Volatile Week - August 4 Analysis Join us for today's overview of the North American markets on August 4, 2025. Following a challenging Friday for risk assets, a strong buying surge has emerged, propelling markets upward to start the new week. Market behavior today reflects cautious optimism, with some investors taking advantage of recent dips to buy assets at lower prices. The prior Thursday's selloff appears to have been a preemptive move, allowing value-driven traders to position themselves advantageously. Investors are currently pricing in a potential 25 basis point interest rate cut in September, influenced by political pressures from the Trump administration and emerging concerns among Federal Reserve officials about the economy. While the Fed's mandate remains focused on employment and inflation, the recent weak Non-Farm Payrolls report has sparked speculation about future policy communication strategies. According to CME FedWatch, the probability of a 25 basis point rate reduction in September has risen to approximately 92.5%, up from around 40% following last week's Powell speech. Market participants will be watching the upcomin...