Post-Bell｜Indexes Post Biggest Daily Pct Gains Since May 27; Nasdaq Rose 2%; S&P 500 And Dow Jones Up 1%

All three major U.S. stock indexes scored their biggest daily percentage increases since May 27 on Monday as investors sought bargains after the previous session's selloff and ramped up bets for a September interest rate cut after Friday's weaker-than-expected jobs data.

Market Snapshot

The Dow Jones Industrial Average .DJI rose 585.06 points, or 1.34%, to 44,173.64, the S&P 500 .SPX gained 91.93 points, or 1.47%, at 6,329.94 and the Nasdaq Composite .IXIC climbed 403.45 points, or 1.95%, to 21,053.58.

Market News

Berkshire Hathaway fell 2.9%.Second-quarter operating profit after taxesdropped 4% from a year earlier to $11.2 billion. The period included foreign-exchange losses of $877 million related to Berkshire’s non-U. S. dollar debt. Earnings would have risen from a year earlier if the noncash loss was excluded. As of June 30, Berkshire’s massive cash balance had declined slightly to $344 billion from roughly $348 billion at the end of March.

Tesla gained 2.2% after the electric-vehicle maker’s board approved acompensation packagefor CEO Elon Musk. The package consists of 96 million shares of restricted stock, worth about $29 billion. Anearlier pay packagewas struck down by a judge in January 2024 on the grounds that it was unfair to shareholders. Tesla shares closed down 1.8% on Friday.

Boeing stock rose 0.2%, paring earlier losses after astrikebegan at three defense plants in the St. Louis area on Monday. About 3,200 workers atBoeingfacilities in Missouri and Illinois rejected a labor deal on Sunday, according to the IAM Union. The latest strike is the second for the aerospace giant in less than a year.

ON Semiconductor slumped 16%. The maker of chips for vehicles and industrial equipment postedadjusted earningsof 53 cents a share, in line with the consensus estimate among analysts polled by FactSet. Revenue fell 15% to 1.47 billion in the second quarter, though it narrowly beat the $1.45 billion Wall Street was looking for.

Amazon.com was down 1.4%. Although the e-commerce company’s second-quarter earnings beat expectations, it failed to impress with its guidance for the current quarter, and growth in its cloud business appeared slower than investors had hoped. Amazon ended the session down 8.3% on Friday.

Shares of Palantir Technologies rose 4.1%. The data-analytics company is slated to reportsecond-quarter earningsafter the closing bell. The U.S. Army said Thursday that it had selected Palantir for a10-year dealworth up to $10 billion.

CommScope skyrocketed 86% after Amphenol confirmed it had struck a $10.5 billion deal to buy CommScope’s broadband connectivity and cable unit. Amphenol said it intends to finance the acquisition through a combination of cash on hand and debt. Shares rose 4.1%.

Idexx Laboratories surged 27% after second-quarter earnings topped expectations. The maker of diagnostic products for veterinary offices also hiked its outlook and now sees 2025 earnings per share of $12.40 to $12.76, a 40-cent increase at the midpoint of its prior guidance.

Joby Aviation gained 19%. The developer of electric air taxis said it would purchase Blade Air Mobility in a deal worth up to $125 million. Blade’s passenger air-taxi business will operate as a wholly owned subsidiary of Joby and will be headed by Blade CEO Rob Wiesenthal. Blade stock rose 17%.

D-Wave Quantum rose 4.9% to $17.18. The quantum computing company unveiled a tool kit for artificial-intelligence developers, saying it marked a “pivotal step” the development of quantum AI. Also, Needham analysts maintained a Buy rating on D-Wave shares while boosting their price target to $20 from $13.

BioNTech SE posted a quarterly loss of 1.60 euros a share, narrower than the loss of 3.36 euros last year and better than the loss of 2.28 euros expected by analysts. Revenue of 261 million euros ($302.1 million) came in above Wall Street estimates. U.S.-listed shares of the Covid vaccine maker were up 2.5%.

Market Movers

Fed's Daly says time is nearing for rate cuts, may need more than two

San Francisco Federal Reserve Bank President Mary Daly on Monday said that given mounting evidence that the U.S. job market is softening and no signs of persistent tariff-driven inflation, the time is nearing for interest rate cuts.

"I was willing to wait another cycle, but I can't wait forever," Daly said of the Fed's decision last week to leave short-term borrowing costs in their 4.25%-4.50% range rather than cut them, as a couple of her colleagues wanted and as President Donald Trump has demanded.

Intel's credit rating downgraded by Fitch on demand challenges

Fitch downgrading U.S. chipmaker Intel's credit rating by one notch on Monday, according to a note by the ratings agency, which assigned a negative outlook to Intel's rating.

Fitch downgraded Intel to BBB from BBB-plus, placing it just two notches shy of junk credit status.