After Friday’s sell-off, Monday 8/4/2025 felt better for investors

Posted By on August 5, 2025

U.S. stocks surged on Monday, August 4, 2025, with major indexes like the Dow industrials climbing over 500 points, a gain of 1% or more. From utilities to meme stocks, the rally was broad-based, catching some investors Market Closing August 4, 2025off guard after last week’s volatility.

Markets faced turbulence late last week due to President Trump’s tariff announcements, a disappointing jobs report, and his decision to fire the head of the Bureau of Labor Statistics. These events spurred investors to increase bets on a Federal Reserve interest rate cut in September.

“The speed of this market rebound was unexpected,” said Thomas Martin, senior portfolio manager at Globalt Investments. “I thought we’d see a deeper dip before buyers stepped in, but people aren’t waiting around.”

On Sunday, Trump announced he will soon name successors for BLS Commissioner Erika McEntarfer and departing Fed governor Adriana Kugler, whose surprise resignation opens a seat that could influence the Federal Reserve’s direction, including Trump’s intended replacement for Fed Chair Jerome Powell.

With a new trade deadline approaching on Thursday, last-minute negotiations are underway as countries aim to secure lower duties with the White House.

WSJ Graphic - Selloff and Recovery
WSJ.com story and graphic

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