Nasdaq 100 and S&P500: Tech and Healthcare Stocks Lead US Indices Higher Today

Wall Street Rebounds Sharply as Traders Eye Fed Rate Cuts After Weak Jobs Report

U.S. stocks rallied Monday, recovering from Friday’s steep selloff after soft labor market data raised expectations of Federal Reserve rate cuts.

The S&P 500 gained 0.9%, the Nasdaq Composite rose 1.4%, and the Dow Jones Industrial Average added 0.6%. Traders reassessed their interest rate outlook following a weaker-than-expected July payrolls report and downward revisions for prior months, now pricing in an 85% chance of a September cut.

The sharp turn in sentiment came after the jobs data showed clear signs of cooling in the labor market, prompting traders to pencil in two quarter-point rate cuts by year-end.

The CBOE Volatility Index dropped to 18.45, calming from Friday’s spike to a one-month high. Meanwhile, attention turned to political risk as Fed Governor Adriana Kugler’s resignation opened the possibility for a new Trump appointee, adding uncertainty to future central bank policy direction.

Are Tech and Communication Stocks Signaling a Broader Recovery?

Technology and communication services led the market’s rebound, each rising over 2%. The tech-heavy Nasdaq saw notable strength as the sector posted a 2.03% gain, driven by momentum in names like Spotify, which climbed 7.6% after announcing price hikes for its premium plan.

Lyft gained 2.9% after revealing a partnership with Baidu to launch robotaxis in Europe.

Tesla added 2.6% after shareholders approved Elon Musk’s $29 billion pay package.

Software names also posted solid gains, with Monolithic Power up 4.65% and F5 Inc advancing 4.06%.

Meanwhile, Adobe fell 2.16%, bucking the broader trend.

Communication services rose 2.09%, helped by strength in digital platforms and media.

Which Sectors Are Showing Strength Beyond Tech?

All 11 S&P sectors ended in the green.

Materials climbed 1.27%, real estate gained 1.06%, and utilities added 1.65%—each benefiting from the prospect of falling yields. Industrials rose 0.83%, led by a 4.44% jump in Ingersoll Rand.

Consumer discretionary and staples advanced 0.69% and 0.39%, respectively, while financials added 0.49%.

Health care posted a 1% gain, with ResMed and IDEXX Laboratories jumping 4.68% and 27.3% respectively. Energy was the lone laggard, slipping 0.3% as crude prices eased.

What Corporate News and Earnings Are on Trader Radars?

Corporate headlines added to Monday’s bullish tone.

Joby Aviation surged 17.5% following reports of a potential acquisition of Blade Air Mobility, which soared 25.4%.

Earnings season continued with strength, as 80.6% of S&P 500 firms have topped expectations so far—marking the best beat rate since Q3 2023. Traders now eye upcoming reports from Palantir, Eli Lilly, and Disney.

What’s Next for the Market as Fed and Economic Data Guide the Outlook?

With rate cut bets rising, markets will turn their attention to Tuesday’s ISM services report and Thursday’s jobless claims for confirmation of economic softness. A light data calendar keeps focus on Fed commentary and political developments. Traders are positioning for a dovish turn, though any surprise in inflation or labor data could reset expectations. Treasury yields and sector rotation will be key signals in the coming sessions.

More Information in our Economic Calendar.