U.S. Stocks Rally On Bargain Hunting, Interest Rate Cut Optimism

This market analysis by RTTNews Staff Writer examines Monday's significant stock market rally that helped major indices recover from recent losses.

U.S. stock markets experienced a strong rebound on Monday, with the Nasdaq surging 2.0%, the S&P 500 rising 1.5%, and the Dow jumping 1.3%. The rally came as traders bought stocks at reduced prices following last Friday's sharp decline, which was triggered by concerns over Trump's tariffs, disappointing jobs data, and Amazon's stock slump. Optimism about potential Federal Reserve rate cuts in September also fueled investor confidence.

• The Nasdaq gained 403 points to close at 21,053, while the S&P 500 and Dow reached 6,329 and 44,173 respectively
• Federal Reserve rate cut probability for September increased to 91.9% from 63.1% the previous week
• Networking stocks led sector gains with a 10% surge, while gold stocks rose 4.7% amid precious metal price increases
• Factory orders dropped 4.8% in June, slightly better than the expected 5.0% decline but following May's strong 8.3% increase