Additional investor concern came from new U.S. tariff adjustments on countries like Syria and Taiwan, with duties now ranging from 10% to 41%. Despite these headwinds, traders saw value opportunities in blue chips and rotated capital accordingly.
Which Dow stocks led the charge higher?
Nvidia gained 3.3% to lead the Dow’s top performers, followed by Microsoft, up 2.5%, and Goldman Sachs, which rose over 2%. Industrials and consumer stocks also participated, with 3M up 2.1%, Home Depot advancing 1.9%, and Disney gaining 1.8%. Financials broadly rebounded, including JPMorgan (+1.3%) and Travelers (+1.5%), after steep losses last week.
Conversely, defensive and energy names lagged. Amazon slid 0.8%, Chevron fell 0.7%, and Procter & Gamble closed nearly flat. Boeing and Coca-Cola also saw minor losses, reflecting a lack of conviction in more defensive plays during the bounce.
What’s weighing on the banks, despite the bounce?
Friday’s disappointing jobs print remains a concern for financial stocks. Bank of America analysts warned Monday that banks could continue facing pressure through the traditionally weak August–September stretch.
JPMorgan, Wells Fargo, Goldman Sachs, and Citigroup all suffered steep losses last week, following signs of softening in employment and credit quality.
Although analysts say the broader credit market still reflects stable business and consumer conditions, any further rise in unemployment could threaten this outlook. As BofA noted, credit health hinges on labor market resilience.