U.S. Stocks Rally Over 1% Amid Rate Cut Expectations and Weak Employment Data

U.S. stock markets rallied over 1% on Monday, driven by investor optimism following recent declines and growing expectations of interest rate cuts in September amid weak employment data. All three major indices closed higher, with the S&P 500 increasing by approximately 1.48% to 6,330.07, the Nasdaq Composite rising nearly 1.94% to 21,050.56, and the Dow Jones advancing by about 1.35% to 44,177.36. Investor sentiment was boosted by the announcement that Tesla CEO Elon Musk was granted 96 million shares valued at roughly $29 billion, and by the rising probability—now around 84% according to CME Fedwatch—of a rate cut in September. Market analysts noted that despite recent record highs, concerns about the weakening labor market persist, especially after Friday's disappointing jobs report and downward revisions for previous months. Market participants are also considering geopolitical factors, including the recent firing of a Labor Statistics official and the unexpected resignation of a Federal Reserve governor, which could influence monetary policy decisions. Meanwhile, companies like Spotify announced price increases for premium subscriptions, and Joby Aviation revealed plans to a...