US stocks today: S&P 500 recovers half of Friday's loss as Wayfair jumps 12%, Tyson gains 3.8%
The S&P 500 climbed 0.8% in early trading, clawing back nearly half of Friday's steep drop. The Dow Jones Industrial Average rose by 310 points, or 0.7%, while the tech-heavy Nasdaq composite led the gains with a 1.2% increase.
Leading the charge was Wayfair, which surged 12.3% after reporting stronger-than-expected profit and revenue for the spring quarter, driven by accelerating growth. Tyson Foods also impressed investors with quarterly results that beat analysts' forecasts, lifting its stock by 3.8%.
The company owns popular food brands such as Jimmy Dean and Hillshire Farms.
Offsetting some of the gains, On Semiconductor fell 7.1% after merely matching analysts' profit expectations. The company, which supplies the auto and industrial sectors, said it is beginning to see 'signs of stabilization' among its customer base.
With stock prices reaching record highs in recent months, investors are demanding strong earnings to justify elevated valuations.
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Some market watchers have warned that prices may have run too far ahead of economic fundamentals.
Last week saw the worst performance for US markets since April. The slide was driven less by valuation concerns and more by fears that Trump's tariffs are starting to hit economic activity. A weaker-than-expected jobs report added to those worries, showing that job growth had slowed sharply and the unemployment rate had ticked up to 4.2%.
Trump reacted by firing the official in charge of compiling the jobs data and renewed criticism of the Federal Reserve. While some economists say the Fed should cut rates to support the economy, the central bank has so far opted to keep rates steady this year, in part due to inflation risks—some of which may be worsened by tariffs.
The dismal jobs data, however, did increase market expectations of a rate cut at the Fed's September meeting.
Treasury yields reflected this shift in sentiment, with the 10-year yield slipping to 4.21% from 4.23% on Friday. The two-year yield, which tends to follow rate expectations more closely, inched up to 3.70% from 3.69%.
This week is expected to be relatively quieter in terms of market-moving events, following the deluge of economic data and earnings last week. Key earnings reports are due from The Walt Disney Co., McDonald's, and Caterpillar, alongside new readings on US business activity.
Among individual stocks, Boeing dipped 0.8% after around 3,200 workers at its Midwest fighter jet manufacturing facilities went on strike. The strike followed the rejection of a revised four-year labor agreement that had proposed a 20% wage increase.
Berkshire Hathaway shares fell 3.2% after Warren Buffett's conglomerate reported second-quarter profits that were less than half of what it earned a year earlier, largely due to a write-down on its investment in Kraft Heinz.
Tesla rose 2.5% after awarding CEO Elon Musk 96 million restricted stock units valued at about $29 billion. The move comes just six months after a court voided Musk's earlier pay package and could allay concerns about his future at the company.
Global markets were largely positive. France's CAC 40 rose 1%, South Korea's Kospi added 0.9%, and most Asian and European indexes followed suit. Japan's Nikkei 225, however, slipped 1.2%, bucking the broader trend.
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