Stan Choe, AP Business Writer
NEW YORK (AP) — US stocks are rallying and recovering many of their sharp losses as they worry about how President Donald Trump’s tariffs are punishing the economy.
The S&P 500 jumped 1.2% in morning trading, keeping it down more than two-thirds of Friday’s decline. The Dow Jones industrial average rose 396 points (0.9%) as of 10:15am Eastern time, with Nasdaq Composite rising 1.6%.
IDEXX’s lab led the way, up 23.7% after veterinary sellers and other healthcare products sellers reported stronger profits than analysts expected. It also raised its annual profit forecast.
Tyson Foods similarly delivered more than expected profits in the recent quarter, with the company behind the Jimmy Dean and Hillshire Farms brands rising 3.9%.
Warren Buffett’s company helped offset Berkshire Hathaway’s 2.7% decline after reporting less than half of profit in the second quarter from a year ago. The decline was partly due to a decline in the value of the investment in Kraftheinz.
After stock prices are recorded after recent records, pressure is put on US companies to provide greater profits. The stock price jump from a low point in April sparked criticism that the wider market was too expensive.
Stocks have just sunk into their worst week, not criticising it, but worrying that Trump’s tariffs are stricken by the US economy following a longer wait than some economists expected. Employment growth slowed sharply last month, with the unemployment rate slumping to 4.2%.
Trump responded to the number of jobs that were disappointed by firing the person responsible for editing them. He also continued his criticism of the Federal Reserve. It could cut interest rates in efforts to fire adrenaline into the economy. Instead, the Fed has maintained a suspension this year. This is because lower fees could make inflation higher and Trump’s tariffs could be set to raise prices for US households.
A surprising weak employment report on Friday raised expectations that interest rates must be cut at the next meeting in September on Wall Street. That caused the Treasury to plummet in the bond market, which they were mixed on Monday.
Treasury yields fell to 4.22% from 4.23% in the second half of Friday.
The two-year yield, which travels closer to expectations of Feds’ actions, has been extended from 3.69% to up to 3.70%.
“In our view, we believe this will be supportive for the market if the Fed begins to cut fees at its September meeting,” according to David Lefkowitz, head of US equity at UBS Global Wealth Management.
Such hopes, combined with profit reports from large US companies that have so far been better than expected, could help stabilize the US stock market, which may be caused by turbulence. Before Friday, I was up and down for over a month without a 1% swing.
This week, Wall Street fireworks could be fewer, following last week’s employment report and earnings updates from some of the most influential companies in the US stock market. Highlights of this week may include revenue reports from Walt Disney Co., McDonald’s and Caterpillar, as well as updates on US business activities.
On Wall Street, Wayfair helped furniture and home decor retailers lead the way with a 6.8% jump after saying it would help analysts increase profits and revenues during the spring than expected.
Tesla rose 2.8% after awarding CEO Elon Musk 96 million shares for around $29 billion. The move, which comes just six months after the judge ordered the company to cancel his large pay package, has managed to remove concerns that Musk might leave the company.
They helped offset a 9.3% decline in semiconductors, merely to align analysts’ expectations for profits in the latest quarter. The company, which sells to the automotive and industrial industries, said it is beginning to see “signs of stabilization” across its customers.
Boeing skated 1.5% after workers building fighter jets for the troubled aerospace giant continued their strike overnight.
Approximately 3,200 workers at Boeing facilities in the Midwest voted to reject the revised four-year labor contract with the company, their union said. The vote followed the rejection of members of the previous proposal last week from the troubled aerospace giant that included a 20% wage rise over four years.
In overseas stock markets, indexes rose in most parts of Europe and Asia.
Korea’s Kospi rose 0.9%, France’s CAC 40 rose 1%, and Japan’s Nikkei 225 was an outlier with a 1.2% drop.
This version fixes that the US stock market has had its worst week since last week in May, not April.
AP business writers Matt Ott and Elaine Kurtenbach contributed.
Original issue: August 4, 2025, 9:57am EDT
