On August 5, 2025, global markets rose for a second consecutive day following weaker-than-expected U.S. non-farm payroll data. The data strengthened expectations of an imminent interest rate cut by the U.S. Federal Reserve.

Stocks

• STOXX 600 (Europe): Up 0.4%, boosted by strong earnings from Diageo and DHL.

• MSCI Asia-Pacific (excluding Japan): Gained 0.7%.

• Nikkei (Japan): Rose 0.5%.

• U.S. markets: Continued upward on rate cut expectations.

Labor and Policy

• U.S. payroll numbers came in below forecasts and were revised downward for May and June.

• President Trump dismissed the head of the Bureau of Labor Statistics.

• Federal Reserve Governor Adriana Kugler resigned.

• San Francisco Fed President Mary Daly indicated support for rate cuts, citing labor market weakness and easing inflation.

Currencies and Commodities

• The U.S. Dollar Index dropped to 98.7.

• Gold held near one-week highs.

• Oil prices edged lower following increased output from OPEC+.

Corporate Developments

• Palantir shares surged 6% after strong AI-driven forecasts and news of a potential $10 billion U.S. Army contract. The company’s market cap surpassed $360 billion.

• Diageo and DHL posted better-than-expected earnings.

• Investors are now awaiting results from Disney, McDonald’s, Pfizer, AMD, and Caterpillar.