U.S. Stock Markets React Positively to Weak Jobs Data, Anticipate Fed Rate Cut

Major U.S. stock indexes climbed by 1% on Monday, as investors seized bargain opportunities following the previous session's selloff. They are also anticipating a rate cut in September, spurred on by Friday's weaker-than-expected jobs data.

Significant gains were seen in Tesla, which rose 2.1% after CEO Elon Musk was granted 96 million shares valued at approximately $29 billion. The likelihood of a September rate cut is currently at 84%, with market predictions indicating at least two quarter-point reductions by year's end, according to CME Fedwatch.

Economic signals from Friday's bleak July jobs report were compounded by steep downward revisions for May and June. The market reaction suggests a healthy appetite for investment opportunities, even amid concerns about a weaker labor market than anticipated. Moreover, the S&P 500 and Nasdaq recently achieved a string of record highs.

(With inputs from agencies.)