Dow Jones gains 500 points, in a sharp bounce back

Stocks rose Monday, with major US indexes climbing 1% or more in everything from utilities to meme stocks rallying. Markets were buffeted late last week by President Trump’s tariff moves, a gloomy jobs report and Trump’s firing of the head of the Bureau of Labor Statistics. Investors ramped up bets the Federal Reserve will cut interest rates in September.

With the Dow industrials up about 500 points on the day, the speed of the market U-turn surprised some investors. “I guess I thought we’d get a little bit more of a dip before they came in,” said Thomas Martin, senior portfolio manager at Globalt Investments. “People are hesitant to wait too long.”

Trump said late Sunday he will name this week successors for BLS Commissioner Erika McEntarfer and departing Fed governor Adriana Kugler. The surprise resignation of Biden appointee Kugler opens up a seat that Trump could fill with his intended successor to Fed Chair Jerome Powell.

The new trade deadline looms on Thursday. The stage is set for last-minute negotiations between the White House and countries still hoping to negotiate lower duties.

Companies reporting earnings include Palantir on Monday and McDonald’s, Disney and Uber later this week. The Nasdaq Composite notched a nearly 2% gain, while the S&P 500 and Dow Jones Industrial Average each climbed more than 1%. Last week, the Dow industrials had their worst week since April.

This is welcome news for the Trump administration, amid a recent cooling jobs market. And while many have predicted that Mr. Trump’s tariffs would have devastating effects on the stock market, such predictions have not yet come to fruition.