U.S. Stock Market Rebounds Amid Economic Data and Tariff Concerns on August 4, 2025

On August 4, 2025, U.S. stock markets experienced a significant rebound, recovering much of the losses from the previous week. The S&P 500 rose by 1.2%, the Dow Jones Industrial Average gained 396 points (0.9%), and the Nasdaq Composite increased by 1.6%. This recovery followed a sharp decline on August 1, 2025, when the S&P 500 fell 1.6%, the Dow Jones dropped 1.2%, and the Nasdaq Composite lost 2.2%, marking the worst performance since May. The downturn was attributed to concerns over new tariffs imposed by the Trump administration and a weaker-than-expected jobs report, which showed a slowdown in hiring and an increase in the unemployment rate to 4.2%. These factors heightened expectations that the Federal Reserve might cut interest rates in September. Additionally, the market is anticipating earnings reports from major companies like The Walt Disney Co., McDonald's, and Caterpillar, which are expected to provide further insights into the economic landscape. The yield on the 10-year Treasury eased to 4.21%, and the U.S. dollar gained some strength. The market's response to upcoming earnings reports and potential Federal Reserve actions will be closely watched. International markets also showed mixed performances, reflecting varied economic conditions and investor sentiment. The weak July jobs report and new tariffs have increased concerns about the economy, prompting a reassessment of market strategies and expectations. This period underscores the interconnectedness of global financial markets and the impact of policy decisions on investor confidence and economic stability.