The US stock market recorded a positive increase after all three major indexes recorded their biggest daily jumps since May 27.
The increase was also supported by investors taking the opportunity to buy stocks at lower prices after the previous sell-off and expectations of a September interest rate cut following weaker employment data.
Mike Dickson, Head of Research at Horizon Investments, said that although today's buying activity was moderate and focused on low prices, it was a positive sign for investors looking for opportunities to enter the market.
He also said that the weakness in the labor market was somewhat worrisome because it did not meet expectations, but the new expectations of a possible interest rate cut in September were seen to be able to offset those concerns.
According to CME Fedwatch, the chance of a rate cut in September is estimated at around 84% with market participants expecting at least two quarter-point cuts by the end of this year.
The Dow Jones Industrial Average rose 1.34% to 585.06 points, the S&P 500 rose 1.47% to 91.93 points, while the technology-focused Nasdaq rose 1.95% to 403.45 points.
Investors are now assessing the impact of President Donald Trump's action to fire Bureau of Labor Statistics Commissioner Erika McEntire on Friday following allegations that she had falsified employment data for political purposes.
In other developments, Trump intends to raise tariffs on goods from India after the country bought oil from Russia, while New Delhi insisted it would defend its interests and described the action as unjustified.
Furthermore, shares of electric vehicle (EV) Tesla rose 2.2% after CEO Elon Musk received 96 million shares worth $29 billion, while Spotify shares rose 5% after announcing it would increase the monthly premium price starting in September.
Trading volume on US exchanges recorded $15.05 billion compared to an average of $18.37 billion over the full 20 trading days.
