Wall Street Rebounds as Rate Cut Hopes Ignite

Wall Street futures climbed after a weak jobs report boosted expectations for Federal Reserve rate cuts, calming markets after last week's turmoil. Traders now anticipate a September cut and at least two more by year-end. Meanwhile, Tesla shares rose, and talks on central bank leadership reshaping gained traction.

Wall Street futures rebounded on Monday, spurred by rising hopes for steep Federal Reserve rate cuts following a weak jobs report. Last week's market turmoil had been triggered by a negative U.S. jobs report, causing the S&P 500 to experience its steepest loss in over two months.

The disappointing jobs data prompted a reconsideration of the Fed's rate path, with the CME FedWatch tool indicating an 85% likelihood of a September rate cut. This outlook steadied Wall Street, countering last week's slide, with traders forecasting two further cuts by the year's end.

The potential for change in central bank leadership surfaced with Fed Governor Adriana Kugler's resignation, giving President Trump a chance to influence the Federal Reserve's direction. Meanwhile, Tesla's stock rose in premarket trading, and shares from diverse sectors, including Joby Aviation and Chemours, showed notable movements.

(With inputs from agencies.)