Dow leaps 585 points as U.S. stocks win back most of Friday's wipeout
NEW YORK--U.S. stocks rallied on Monday and won back most of their sharp loss from last week, when worries about how President Donald Trump's tariffs may be punishing the economy sent a shudder through Wall Street.
The S&P 500 jumped 1.5% to follow up its worst day since May with its best since May. The Dow Jones Industrial Average climbed 585 points, or 1.3%, and the Nasdaq composite leaped 2%.
Idexx Laboratories helped lead the way and soared 27.5% after the seller of veterinary instruments and other health care products reported a stronger profit for the spring than analysts expected. It also raised its forecast for profit over the full year.
Tyson Foods likewise delivered a bigger-than-expected profit for the latest quarter, and the company behind the Jimmy Dean and Hillshire Farms brands rose 2.4%.
They helped make up for a nearly 3% loss for Berkshire Hathaway after Warren Buffett's company reported a drop in profit for its latest quarter from a year earlier. The drop-off was due in part to the falling value of its investment in Kraft Heinz.
The pressure is on U.S. companies to deliver bigger profits after their stock prices shot to record after record recently. The jump in stock prices from a low point in April raised criticism that the broad market had become too expensive.
Stocks are coming off their worst week since May not so much because of that criticism but because of worries that Trump's tariffs may be hitting the U.S. economy following a longer wait than some economists had expected. Job growth slowed sharply last month, and the unemployment rate worsened to 4.2%.
Trump reacted to Friday's disappointing jobs numbers by firing the person in charge of compiling them. He also continued his criticism of the Federal Reserve, which could lower interest rates in order to pump adrenaline into the economy.
The Fed has instead been keeping rates steady this year, in part because lower rates can send inflation higher, and Trump's tariffs may be set to increase prices for U.S. households.
Friday's stunningly weak jobs report did raise expectations on Wall Street that the Fed will cut interest rates at its next meeting in September. That caused Treasury yields to slump in the bond market, and they eased a bit more on Monday.
The yield on the 10-year Treasury slipped to 4.19% from 4.23% late Friday.
'In our view, if the Fed starts to cut rates at its September meeting, we believe this would be supportive for markets,' according to David Lefkowitz, head of US equities at UBS Global Wealth Management.
Such hopes, combined with profit reports from big U.S. companies that have largely come in better than expected, could help steady a U.S. stock market that may have been due for some turbulence. Before Friday, the S&P 500 had gone more than a month without a daily swing of 1%, either up or down.
This upcoming week may feature fewer fireworks following last week's jobs report and profit updates from some of Wall Street's most influential companies. This week's highlights will likely include earnings reports from The Walt Disney Co., McDonald's and Caterpillar, along with updates on U.S. business activity.
On Wall Street, American Eagle Outfitters jumped 23.6% after Trump weighed in on the debate surrounding the retailer's advertisements, which highlight actor Sydney Sweeney's great jeans. Some critics thought the reference to the blonde-haired and blue-eyed actor's 'great genes' may be extolling a narrow set of beauty standards. 'Go get 'em Sydney!' Trump said on his social media network.
Wayfair climbed 12.7% after the retailer of furniture and home decor said accelerating growth helped it make more in profit and revenue during the spring than analysts expected.
Tesla rose 2.2% after awarding CEO Elon Musk 96 million shares of restricted stock valued at approximately $29 billion. The move could remove potential worries that Musk may leave the company.
CommScope soared 86.3% after reaching a deal to sell its connectivity and cable business to Amphenol for $10.5 billion in cash, while Amphenol rose 4.1%.
They helped offset a 15.6% loss for On Semiconductor, which only matched analysts' expectations for profit in the latest quarter. The company, which sells to the auto and industrial industries, said it's beginning to see 'signs of stabilization' across its customers.
All told, the S&P 500 rose 91.93 points to 6,329.94. The Dow Jones Industrial Average climbed 585.06 to 44,173.64, and the Nasdaq composite leaped 403.45 to 21,053.58.
In stock markets abroad, indexes rose across much of Europe and Asia.
South Korea's Kospi rose 0.9%, and France's CAC 40 climbed 1.1%, while Japan's Nikkei 225 was an outlier with a drop of 1.2%.
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Japan Times
2 hours ago
- Japan Times
Putin doubts potency of Trump's ultimatum to end the war, sources say
Russian President Vladimir Putin is unlikely to bow to a sanctions ultimatum expiring this Friday from U.S. President Donald Trump, and retains the goal of capturing four regions of Ukraine in their entirety, sources close to the Kremlin said. Trump has threatened to hit Russia with new sanctions and impose 100% tariffs on countries that buy its oil — of which the biggest are China and India — unless Putin agrees to a ceasefire in Russia's war in Ukraine. Putin's determination to keep going is prompted by his belief that Russia is winning and by skepticism that yet more U.S. sanctions will have much of an impact after successive waves of economic penalties during 3½ years of war, according to three sources familiar with discussions in the Kremlin. The Russian leader does not want to anger Trump, and he realizes that he may be spurning a chance to improve relations with Washington and the West, but his war goals take precedence, two of the sources said. Putin's goal is to fully capture the Ukrainian regions of Donetsk, Luhansk, Zaporizhzhia and Kherson, which Russia has claimed as its own, and then to talk about a peace agreement, one of the sources said. "If Putin were able to fully occupy those four regions which he has claimed for Russia he could claim that his war in Ukraine had reached his objectives," said James Rodgers, author of the forthcoming book "The Return of Russia." The current talks process, in which Russian and Ukrainian negotiators have met three times since May, was an attempt by Moscow to convince Trump that Putin was not rejecting peace, the first source said, adding that the talks were devoid of real substance apart from discussions on humanitarian exchanges. Russia says it is serious about agreeing a long-term peace in the negotiations but that the process is complicated because the two sides' stances are so far apart. Putin last week described the talks as positive. Rescuers carry a fragment of Russian cruise missile outside a residential building in Kyiv on Aug. 1 | AFP-Jiji Moscow's stated demands include a full Ukrainian withdrawal from the four regions and acceptance by Kyiv of neutral status and limits on the size of its military — demands rejected by Ukraine. In a sign that there may yet be an opportunity to strike a deal before the deadline, Trump's special envoy Steve Witkoff is expected to visit Russia this week, following an escalation in rhetoric between Trump and Moscow over risks of nuclear war. On Monday, Russia said it was no longer bound by a moratorium on short- and medium-range nuclear missiles. The Kremlin did not respond to a request for comment for this story. All the sources spoke on condition of anonymity because of the sensitivity of the situation. Trump, who in the past has praised Putin and held out the prospect of lucrative business deals between their two countries, has lately expressed growing impatience with the Russian president. He has complained about what he called Putin's "bulls---" and described Russia's relentless bombing of Kyiv and other Ukrainian cities as "disgusting." The Kremlin has said it noted Trump's statements but it has declined to respond to them. Ukrainian Prime Minister Yulia Svyrydenko last week called on the world to respond with "maximum pressure" after the worst Russian airstrike of the year killed 31 people in Kyiv, including five children, in what she called Russia's response to Trump's deadline. "President Trump wants to stop the killing, which is why he is selling American-made weapons to NATO members and threatening Putin with biting tariffs and sanctions if he does not agree to a ceasefire," White House spokeswoman Anna Kelly said in response to a request for comment. Forces advance The first source said Putin was privately concerned about the recent deterioration of U.S. ties. Putin still retains the hope that Russia can again befriend America and trade with the West, and "he is worried" about Trump's irritation, this person said. But with Moscow's forces advancing on the battlefield and Ukraine under heavy military pressure, Putin does not believe now is the time to end the war, the source said, adding that neither the Russian people nor the army would understand if he stops now. U.S. President Donald Trump's sanctions threat was "painful and unpleasant," but not a catastrophe, a Kremlin source said. | REUTERS Rodgers, the author, said Putin has invested his political reputation and legacy in the war in Ukraine. "We know from his previous writings and statements that he sees himself as part of a strong tradition of standing up to the West and the rest of world to defend Russia's interests," he said. The Kremlin leader values the relationship with Trump and does not want to anger him, however, "he simply has a top priority — Putin cannot afford to end the war just because Trump wants it," the second Russian source said. A third person familiar with Kremlin thinking also said Russia wanted to take all four regions and did not see the logic in stopping at a time of battlefield gains during Russia's summer offensive. Ukraine has suffered some of its biggest territorial losses of 2025 in the past three months, including 502 square kilometers in July, according to Black Bird Group, a Finland-based military analysis center. In total, Russia has occupied around a fifth of Ukraine. Russia's military General Staff has told Putin that the Ukrainian front will crumble in two or three months, the first person said. However, Russia's recent gains remain relatively minor in purely territorial terms, with only 5,000 square kilometers of Ukraine taken since the start of last year, less than 1% of the country's overall territory, according to a June report from the Center for Strategic and International Studies, a Washington-based think tank. Ukrainian and Western military sources, acknowledge that Russia is making gains, but only gradually and with heavy casualties. Russian war bloggers say Moscow's forces have been bogged down during its current summer offensive in areas where the terrain and dense urban landscape favored Ukraine, but assess that other areas should be faster to take. 'He's made threats before' Trump's sanctions threat was "painful and unpleasant," but not a catastrophe, the second source said. The third source said there was a feeling in Moscow that "there's not much more that they can do to us." It was also not clear if Trump would follow through on his ultimatum, this person said, adding that "he's made threats before" and then not acted, or changed his mind. The source also said it was hard to imagine that China would stop buying Russian oil on instructions from Trump, and that his actions risked backfiring by driving oil prices higher. As a consequence of previous rounds of sanctions, Russian oil and gas exporters have taken big hits to their revenues, and foreign direct investment in the country fell by 63% last year, according to U.N. trade data. Around $300 billion of central bank assets have been frozen in foreign jurisdictions. But Russia's ability to wage war has been unimpeded, thanks in part to ammunition supplies from North Korea and imports from China of dual-use components that have sustained a massive rise in weapons production. The Kremlin has repeatedly said that Russia has some "immunity" to sanctions. Trump has acknowledged Russia's skill in skirting the measures. "They're wily characters and they're pretty good at avoiding sanctions, so we'll see what happens," he told reporters at the weekend, when asked what his response would be if Russia did not agree to a ceasefire. The first Russian source noted that Putin, in pursuing the conflict, was turning his back on a U.S. offer made in March that Washington, in return for his agreement to a full ceasefire, would remove U.S. sanctions, recognize Russian possession of Crimea — annexed from Ukraine in 2014 — and acknowledge de facto Russian control of the territory captured by its forces since 2022. The source called the offer a "fantastic chance," but said stopping a war was much more difficult than starting it.
Nikkei Asia
3 hours ago
- Nikkei Asia
Trump says he will raise India tariffs in next 24 hours over Russia oil
U.S. President Donald Trump and Indian Prime Minister Narendra Modi are pictured in a mirror as they attend a joint press conference at the White House in Washington in February. © Reuters KEN MORIYASU WASHINGTON -- U.S. President Donald Trump said he is set to raise tariffs on India further in the next 24 hours in light of its continued purchases of Russian oil, which he said is "fueling the war machine."
Japan Times
4 hours ago
- Japan Times
Akazawa returns to U.S. for more talks as tariff deal looks shaky
A trade deal reached by Japan and the United States after months of talks has turned out to be exceedingly fragile, as it emerged that the two countries view the handshake agreement very differently . The lack of formal documentation and slow implementation by the United States of a key tariff concession have left open the possibility that there's not much of deal to begin with . 'The recent Japan-U.S. agreement regarding U.S. tariff measures does not constitute a legally binding international commitment,' economy and fiscal policy minister Ryosei Akazawa told a Lower House budget committee hearing on Monday. Akazawa, Japan's chief negotiator in talks with the United States who shook hands with U.S. President Donald Trump to signal the agreement, departed Tokyo again on Tuesday evening for a four-day trip to Washington. Just two weeks after his triumphant mission-accomplished moment, Akazawa is back in the U.S. for a ninth round of talks. Under the terms of the July 22 deal, the U.S. will impose a 15% 'reciprocal' tariff on most Japanese goods — up from the current 10% but lower than the 25% Washington threatened to impose. Implementation of this portion has been set for Thursday . Also agreed upon was that Trump's tariffs on automobiles were to be cut in half from 25%, with the new total being 15% when a 2.5% levy independent of the Trump tariffs is included. The White House put out a fact sheet soon after the two sides reached the agreement, and the Japanese government issued a four-page powerpoint slide with an outline of the agreement. Among the discrepancies found between the two documents was the implementation of a $550 billion investment pledged by Japan. The U.S. president said Japan will invest at least that amount and at his direction, and that the United States would keep 90% of the profits. Japan said all it had agreed to was to provide loans, loan guarantees and equity investment up to that total through financial institutions backed by the government, and that direct equity investment will be just 1%-2% of the $550 billion. Japanese officials, including Akazawa and Prime Minister Shigeru Ishiba, have repeatedly said there's no plan to issue a joint statement with the United States of any sort. 'There are pros and cons of drafting an agreement document. And because the cons outweigh the pros and it would not serve Japan's national interest, the decision was made not to issue a formal agreement document,' Ishiba told the Lower House on Monday. He said the government will consider releasing more details of the agreement in the coming days. Japan views auto exports as vital to its economy and wants the U.S. to cut the tariff on cars as soon as possible. | Reuters The United Kingdom has a written agreement with the U.S. outlining its trade deal as negotiated with the Trump administration, but the European Union and South Korea do not. In its fact sheet, the EU noted in a bold font that the deal it reached with the U.S. is 'not legally binding.' Richard Katz, an economist and author of 'The Contest for Japan's Economic Future,' said Japan is likely hoping that 'if we don't put the agreement in writing, we don't have to fulfill Trump's demands. 'It can evade the promises Trump may think Japan made — or that Trump is just making up now — all while insisting that Japan is fulfilling its part of the bargain.' The Trump administration has yet to issue a direct order to lower the levies on Japanese vehicles. Auto manufacturing is seen by Japan as a business at the core of its economic interests, and its insistence that the United States lower the rate or eliminate the new duty altogether on cars became a major sticking point during negotiations. U.S. Treasury Secretary Scott Bessent has warned that tariff rates could "boomerang" back to 25% if Trump is 'unhappy' with the implementation of the deal — specifically the $550 billion of investment by Japan into the U.S. One thing that the two sides do have mutual understanding on, according to Akazawa, is the need to ensure the other side lives up to its commitments. 'We have been asking the U.S. to sign the necessary presidential order to lower tariffs on automobiles as soon as possible, and the U.S. side also wants to move forward while reaffirming a shared understanding of the agreement,' Akazawa told an Upper House meeting before his departure. 'We will press for the prompt issuance of a presidential order on auto and auto parts tariffs, even if it's just a day sooner,' he added. "What we are asking for is very simple — just for the president to issue an executive order setting automobile tariffs at 15%,' Akazawa said in Tokyo just before leaving for the airport on Tuesday. 'It's not that there are complicated negotiations or tactics involved.'
