The Nasdaq surged 403.45 points (2%) to 21,053.58, the S&P 500 shot up 91.93 points (1.5%) to 6,329.94 and the Dow jumped 585.06 points (1.3%) to 44,173.64.
Wall Street rallied as traders seized the opportunity to buy stocks at discounted prices after a recent sell-off. The previous steep decline was driven by concerns over President Trump's new tariffs, disappointing jobs data, and a sharp drop in Amazon shares. However, hopes that weak employment numbers could prompt the Federal Reserve to cut interest rates next month boosted investor sentiment. This renewed optimism helped lift the markets from their recent lows.
According to CME Group's FedWatch Tool, the chances of a quarter point rate cut in September have jumped to 91.9% from 63.1% a week ago. the Commerce Department released a report showing factory orders pulled back sharply in the month of June. Further, it said factory orders dove by 4.8% in June after soaring by an upwardly revised 8.3% in May.
Networking stocks substantially moved upside, with the NYSE Arca Networking Index spiking by 10% to a record closing high. CommScope (COMM) led the sector higher, skyrocketing by 86.3% after announcing an agreement to sell its connectivity and cable solutions business to Amphenol (APH). Gold stocks too saw significant strength amid a continued surge by the price of the precious metal, driving the NYSE Arca Gold Bugs Index up by 4.7%. Software, brokerage and computer hardware stocks too moved strongly upwards , moving higher along with most of the other major sectors.
Asia-Pacific stocks moved mostly higher. China's Shanghai Composite Index climbed by 0.7% and Hong Kong's Hang Seng Index advanced by 0.9%, although Japan's Nikkei 225 Index bucked the uptrend and slumped by 1.3%. The major European markets all moved to the upside on the day while the German DAX Index shot up by 1.4%, the French CAC 40 Index jumped by 1.1% and the U.K.'s FTSE 100 Index increased by 0.7%.
In the bond market, treasuries moved modestly higher over the course of the session after showing a lack of direction early in the day. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, dipped 2 bps to a three-month closing low of 4.20%.