Dow gains almost 600 points, recovering Friday’s drop, while S&P 500 breaks four-day losing streak.

Market Recovery on Monday Amid Economic Concerns

On the trading floor of the New York Stock Exchange (NYSE) in the morning session on August 4, 2025, stocks saw a notable uptick, as investors sought to reclaim some of the substantial losses from the previous day. This shift came in response to worries regarding the US economy and recent tariff changes introduced by the Trump administration.

The Dow Jones Industrial Average rose by 585.06 points, or 1.34%, closing at 44,173.64. This recovery helped offset significant selloffs that occurred on Friday. The S&P 500 posted an increase of 1.47%, finishing at 6,329.94, ending a four-day streak of losses and marking its best day since May. Meanwhile, the Nasdaq Composite surged by 1.95%, reaching 21,053.58.

“It’s a bounceback day,” remarked Sam Stovall, the chief investment strategist at CFRA Research. He suggested that such rebounds often follow sharp declines, as investors might decide to cash in on recent profits.

On Friday, many shares dropped sharply due to a disappointing employment report, which included a substantial revision of job figures for May and June. Shortly after the report was released, President Trump dismissed the head of the Bureau of Labor Statistics and indicated that a new commissioner would be named soon.

Concerns regarding newly revised tariff rates have further unsettled the market. Last week, Trump signed an executive order that adjusted “mutual” tariffs on various US trading partners, ranging from Syria to Taiwan, with rates now between 10% and 41%.

This week, with limited economic data expected, investors are paying close attention to trade relations between the US and China following meetings between senior officials in Stockholm, Sweden. Treasury Secretary Scott Bescent mentioned on Thursday to CNBC that a deal seems to be in the works.

Additionally, investors are anticipating earnings reports in the coming days. Palantir is slated to announce results after the market closes on Monday, and AMD is expected to follow up with its report on Tuesday.

Historically, August has not been kind to markets. According to the Stock Trader’s Yearbook, it ranks as the worst month for the Dow Jones Industrial Average, based on data spanning back to 1988, and is noted as the second worst month for both the S&P 500 and the Nasdaq composite.