Markets Rebound: But for how long? 05/08/2025

HOT stories for today

US market wrap:

• Stocks rallied on Monday as investors regained ground following the sharp declines from the previous session, which were triggered by concerns about the U.S. economy and a fresh wave of tariffs introduced by the Trump administration. The Dow Jones Industrial Average climbed 1.34%, effectively reversing Friday’s significant downturn. The S&P 500 rose 1.47%, breaking a four-day losing streak and recording its strongest performance since May. Meanwhile, the Nasdaq Composite jumped 1.95%.
• With a relatively quiet week ahead in terms of economic indicators, market participants are closely monitoring any progress in U.S.-China trade talks, especially after top officials from both nations convened in Stockholm, Sweden, last week. Treasury Secretary Scott Bessent told CNBC on Thursday that “we have the makings of a deal.”

Markets Rebound: But for how long?
 

• Former President Donald Trump slammed July’s jobs report as “RIGGED” and “CONCOCTED” after the Bureau of Labor Statistics sharply revised previous months’ figures downward. Analysts say Monday’s market bounce likely reflects a short-term technical rebound rather than renewed investor confidence.
• “This is a classic recovery after a sharp drop,” said Sam Stovall, chief investment strategist at CFRA. “But the real test will be whether investors start locking in gains in the days ahead. Meanwhile, trade tensions are escalating. Trump plans to significantly raise tariffs on India due to its ongoing oil imports from Russia. At the same time, the EU has paused its planned U.S. tariffs for six months to allow further negotiations.

.
Stocks on the move:

• Palantir Technologies (PLTR): Shares of the defense tech firm climbed 4% after delivering second-quarter results that beat analyst expectations. Palantir posted adjusted earnings of 16 cents per share on $1 billion in revenue, surpassing forecasts from LSEG, which projected 14 cents per share and $940 million in revenue.
• Vertex Pharmaceuticals (VRTX): The biotech stock dropped 14% despite outperforming on second-quarter earnings. Vertex reported adjusted earnings of $4.52 per share on $2.96 billion in revenue, exceeding LSEG estimates of $4.26 per share and $2.91 billion in revenue.
• Hims & Hers Health (HIMS): The telehealth company's shares slid 12% after issuing weaker-than-expected forward guidance. Hims projects third-quarter adjusted EBITDA between $60 million and $70 million, falling short of StreetAccount's consensus estimate of $77 million. Q2 results were mixed, with earnings slightly beating forecasts but revenue falling below expectations.
• Dorman Products (DORM): The auto parts manufacturer surged 7% after raising its full-year adjusted earnings outlook to $8.60–$8.90 per share, up from a prior range of $7.55–$7.85. The company also posted second-quarter earnings and revenue that exceeded analyst estimates, according to FactSet.

Watchlist: PLTR, VRTX, HIMS, SNAP, PFE, YUM, AMD, RIVN

Today’s action

• Asia-Pacific equities edged higher after former U.S. President Donald Trump announced plans to sharply increase tariffs on Indian exports, citing India’s reselling of discounted Russian oil at a profit. “India is not only buying massive amounts of Russian Oil, they are then... selling it on the Open Market for big profits,” Trump wrote on Truth Social. Mainland China’s CSI 300 gained 0.32%, while Hong Kong’s Hang Seng Index rose 0.24%, mirroring broader regional strength.
• U.S. stock futures ticked up modestly Monday night following Wall Street’s rebound. Dow Jones Industrial Average futures added 0.1%, while S&P 500 and Nasdaq 100 futures also climbed 0.1% each. Investors are eyeing another wave of earnings reports on Tuesday. Pfizer (PFE), Yum! Brands (YUM), and Fox (FOXA) report before the bell, while Snap (SNAP), Advanced Micro Devices (AMD), and Rivian (RIVN) are set to report after the close. Key U.S. economic data, including the trade deficit and purchasing data, is also due Tuesday morning and may influence market sentiment.

Bitcoin

• Bitcoin (BTC: $114,275) is stabilizing after dipping below $112,000, with volatility expected to persist through August. Market focus is shifting back to the Federal Reserve, as bets on a September rate cut resurface. Despite a wave of selling from long-term holders and whales, underlying demand remains solid.
• Meanwhile, Coinbase adviser George Osborne warned that the UK is falling behind on stablecoin regulation. After 15 straight weeks of inflows, crypto funds saw net outflows, and the CFTC signaled plans to respond to the White House’s latest crypto policy report.
  Watchlist: BTC: 99,000–123,000 | ETH: 3,000–3,800 | SOL: 200–260

Forex

• The Japanese Yen lost momentum on Tuesday after modest gains in the Asian session, as the US Dollar rebounded broadly. Hawkish Bank of Japan meeting minutes and an upward revision in Japan’s Services PMI supported the JPY, but political uncertainty tempered bullish sentiment.
• Meanwhile, EUR/USD slipped for a second straight session, trading near 1.1560, pressured by a stronger USD amid rising risk aversion. Traders await Eurozone and German PMI data, while CME FedWatch shows a 91.6% chance of a Fed rate cut in September, which could limit further USD upside. Focus will turn to U.S. ISM PMI figures later in the day.
  Watchlist: EUR/USD: 1.1000–1.1650 | USD/JPY: 140–162

Basic Materials

• Gold (XAU/USD) remains under pressure, trading just below a two-week high despite softer U.S. jobs data fueling Fed rate cut expectations for September. Modest USD strength and a positive risk tone cap gains for the safe-haven asset, though depressed Treasury yields offer some support.
• Meanwhile, WTI crude trades near $65.65, slipping in early Asian hours after OPEC+ approved a 547,000 bpd output increase for September. Traders now look to the API weekly crude inventory report for fresh direction.
  Watchlist: Gold: 2,600–3,500 | US Oil: 55.60–75.80

Economic Calendar (EST):

08:30 am: Trade Balance
09:45 am: Final Services PMI
10:00 am: ISM Services PMI


Earnings:

CAT                   Caterpillar Inc.
ETN                   Eaton Corp.
PFE                   Pfizer Inc.
BP                      BP Plc.

AMC (After Market Close): AMD, AMGN, ANET


The TEFS Analyst team wishes you a successful day!