9.55am: Tech leads rebound
US stocks opened firmly in the green on Monday, recovering ground after last week’s sharp declines triggered by disappointing labour market data.
The Dow Jones rose almost 1% and the S&P 500 gained over 1%, while the tech-laden Nasdaq led the charge, up 1.4%. The small cap Russell 2000 advanced 0.75% to 2,183.
Topping the S&P leaderboard is IDEXX Laboratories, up 20% after the animal health company raised its guidance.
Super Micro Computer, reporting later in the week, and Palantir Technologies, reporting after today's close, are also among top risers, up 3% and 2.7% respectively.
8am: Wall Street set to rebound, led by tech
US stock futures pointed to a firmer open on Monday, recovering some of last week's heavy losses sparked by a weaker-than-expected jobs report and political fallout at the Bureau of Labor Statistics.
Nasdaq 100 futures were up 0.5% with Dow Jones and S&P 500 futures both up around 0.4%.
Markets are expected to stabilise after a sell-off at the end of last week as Donald Trump confirmed reciprocal tariffs on many countries and the non-farm payrolls report came in well below forecasts.
The Dow shed 542 points or 1.2% on Friday, with the S&P down 1.6% and the Nasdaq and Russell 2000 both sliding more than 2%, as nonfarm payrolls data significantly undershot forecasts.
The US economy added just 73,000 jobs in June, with 258,000 downward revisions to the previous two months further damaging sentiment.
The rolling three-month job gain average fell to 35,000, well below the 150,000 pace seen earlier this year.
This "completely reshaped the narrative of a resilient labour market", said Swissquote analyst Ipek Ozkardeskaya.
The jobs shock pushed the market-implied probability of a Federal Reserve rate cut in September to over 80%, up from 38% pre-report. US 2-year Treasury yields dropped below 3.70%, and volatility surged, with the VIX jumping 22%.
The fallout extended beyond the markets. President Trump fired BLS commissioner Erika McEntarfer, accusing her of manipulating the data, which analysts warned could undermine the credibility of future economic reports.
"Stocks tanked. Bonds surged. Yields plunged. Crypto paused. And the VIX? It spiked 22%, blasting through all three trendlines," said Kenny Polcari of Slatestone Wealth.
He noted that there have even been calls for a potential intra-meeting Fed cut, though such a move risks being interpreted as panic unless well communicated.
"The Fed’s challenge is this: they don’t want to spook the markets, but they do want to show they’re paying attention."
On the plus side, earnings season mostly continues to deliver. Of the S&P 500 companies that have reported so far, 82% have beaten EPS forecasts, with average earnings growth approaching 10%, according to FactSet.
However, the forward-looking guidance picture remains cloudy. "Outside of AI, it’s not great," Ozkardeskaya said, citing corporate warnings around tariffs and global demand.
After the slew of banks and tech stocks reporting in the past two weeks, there are many more US earnings to come this week, with Palantir Technologies Inc (NYSE:PLTR) and MercadoLibre the notable names today, both due afterhours.
Earnings later in the week include semiconductor names Advanced Micro Devices Inc (NASDAQ:AMD, ETR:AMD) and Super Micro Computer Inc (NASDAQ:SMCI), plus Pfizer Inc (NYSE:PFE, ETR:PFE), Caterpillar Inc (NYSE:CAT, ETR:CAT1), Uber Technologies Inc (NYSE:UBER, ETR:UT8), Walt Disney Co (NYSE:DIS, ETR:WDP) and Eli Lilly and Co (NYSE:LLY).