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Tesla rises on 96 million share award to CEO Musk

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Spotify ( SPOT ) to raise premium subscription price, shares jump

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Indexes: Dow up 1.1%, S&P 500 up 1.3%, Nasdaq up 1.8%

(Updates to afternoon trading)

By Caroline Valetkevitch

NEW YORK, Aug 4 (Reuters) -

Major U.S. stock indexes rose 1% on Monday as investors

sought bargains after the previous session's selloff and

increased bets for a September rate cut in the wake of Friday's

weaker-than-expected jobs data.

Tesla shares rose 2.1% after the electric

vehicle maker granted CEO Elon Musk 96 million shares worth

about $29 billion.

Odds for a September rate cut now stand at about 84%,

according to CME Fedwatch. Market participants see at least two

quarter-point cuts by the end of this year.

Friday's bleak July jobs data also accompanied steep

downward revisions for May and June.

"Today is just a little bit of dip-buying. It does show a

pretty healthy sign of folks out there looking for an

opportunity to get in," said Mike Dickson, head of research and

quantitative strategies at Horizon Investments in Charlotte,

North Carolina.

"It's a little concerning in the sense the labor market

... definitely appears to be weaker than people expected. A bit

of an offset to that is the renewed rate cut expectations.

There's a high probability we're getting a September cut."

The S&P 500 and Nasdaq had hit a string of record highs

recently. The S&P 500 is now up about 7.5% for the year to date.

The Dow Jones Industrial Average rose 489.91 points,

or 1.12%, to 44,078.39, the S&P 500 gained 81.33 points,

or 1.30%, at 6,319.34 and the Nasdaq Composite climbed

377.21 points, or 1.83%, to 21,027.34.

Investors were still digesting Trump's firing of the Bureau

of Labor Statistics Commissioner Erika McEntarfer on Friday,

accusing her of faking the weak jobs numbers.

Also on Friday, Fed Governor Adriana Kugler unexpectedly

resigned, which could open the door for U.S. President Donald

Trump to reshuffle the central bank's leadership in his favor.

Trump has been pushing the Fed to cut rates.

Among rising shares, Spotify ( SPOT ) gained 6% as the music

streaming platform announced plans to raise the monthly price of

its premium individual subscription in select markets from

September.

Joby Aviation ( JOBY ) jumped 21% after Bloomberg News

reported that the company was exploring the acquisition of

helicopter ride-share operator Blade Air Mobility ( BLDE ).

Blade Air's shares surged 22%.

Advancing issues outnumbered decliners by a 4.23-to-1 ratio

on the NYSE. There were 103 new highs and 45 new lows on the

NYSE.

On the Nasdaq, 3,322 stocks rose and 1,126 fell as

advancers outnumbered decliners by a 2.95-to-1 ratio.