Trump reacted to Friday’s disappointing jobs numbers by firing the person in charge of compiling them. He also continued his criticism of the Federal Reserve, which could lower interest rates in order to pump adrenaline into the economy.

The Fed has instead been keeping rates steady this year, in part because lower rates can send inflation higher, and Trump’s tariffs may be set to increase prices for US households.

Friday’s stunningly weak jobs report did raise expectations on Wall Street that the Fed will cut interest rates at its next meeting in September. That caused Treasury yields to slump in the bond market, and they eased a bit more on Monday.

The yield on the 10-year Treasury slipped to 4.19 per cent from 4.23 per cent late Friday.

“In our view, if the Fed starts to cut rates at its September meeting, we believe this would be supportive for markets,” according to David Lefkowitz, head of US equities at UBS Global Wealth Management.

Such hopes, combined with profit reports from big US companies that have largely come in better than expected, could help steady a US stock market that may have been due for some turbulence. Before Friday, the S&P 500 had gone more than a month without a daily swing of 1 per cent, either up or down.

This upcoming week may feature fewer fireworks following last week’s jobs report and profit updates from some of Wall Street’s most influential companies. This week’s highlights will likely include earnings reports from Disney, McDonald’s and Caterpillar, along with updates on US business activity.

On Wall Street, American Eagle Outfitters jumped 23.6 per cent after Trump weighed in on the debate surrounding the retailer’s advertisements, which highlight actor Sydney Sweeney’s great jeans. Some critics thought the reference to the blonde-haired and blue-eyed actor’s “great genes” may be extolling a narrow set of beauty standards. “Go get ’em Sydney!” Trump said on his social media network.

Wayfair climbed 12.7 per cent after the retailer of furniture and home decor said accelerating growth helped it make more in profit and revenue during the spring than analysts expected.

Tesla rose 2.2 per cent after awarding CEO Elon Musk 96 million shares of restricted stock valued at approximately $US30 billion ($46 billion). The move could remove potential worries that Musk may leave the company.

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CommScope soared 86.3 per cent after reaching a deal to sell its connectivity and cable business to Amphenol for $US10.5 billion in cash, while Amphenol rose 4.1 per cent.

They helped offset a 15.6 per cent loss for On Semiconductor, which only matched analysts’ expectations for profit in the latest quarter. The company, which sells to the auto and industrial industries, said it’s beginning to see “signs of stabilisation” across its customers.

All told, the S&P 500 rose 91.93 points to 6,329.94. The Dow Jones Industrial Average climbed 585.06 to 44,173.64, and the Nasdaq composite leaped 403.45 to 21,053.58.

In stock markets abroad, indexes rose across much of Europe and Asia.

South Korea’s Kospi rose 0.9 per cent, and France’s CAC 40 climbed 1.1 per cent, while Japan’s Nikkei 225 was an outlier with a drop of 1.2 per cent.

AP

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