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Futures up: Dow 0.54%, S&P 500 0.59%, Nasdaq 0.78%

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Tesla rises on 96 million share award to CEO Musk

(Updates with prices)

By Nikhil Sharma and Pranav Kashyap

Aug 4 (Reuters) -

Wall Street futures rebounded from last week's rout on

Monday, as hopes for steeper Federal Reserve rate cuts surged

after a surprisingly weak jobs report.

A

dismal U.S. jobs report

sent the S&P 500 tumbling to its steepest intraday

loss in more than two months on Friday, with downward revisions

for May and June compounding the blow.

The bleak data did not just trigger the market selloff -

it also sparked a dramatic rethink of the Fed's rate path.

According to the CME FedWatch tool, traders now see an

85% chance of a September rate cut, up from just over 63% a week

ago, as signs of a faltering labor market mount.

By this year end, markets are betting on at least two

quarter-point cuts, about 60 basis points - a prospect that

helped steady Wall Street in the aftermath.

At 6:57 a.m. ET, U.S. S&P 500 E-minis were up 36.75

points, or 0.59%, Nasdaq 100 E-minis were up 177.5

points, or 0.78%, Dow E-minis were up 238 points, or

0.54%

The central bank's decision to keep rates unchanged last

week drew immediate criticism from President Donald Trump, who

has repeatedly threatened to fire Chair Jerome Powell, arguing

that rates should be much lower than they are.

Adding to the intrigue, the surprise resignation of Fed

Governor Adriana Kugler has handed Trump an

earlier-than-expected opportunity to reshape the central bank's

leadership.

"It is expected that whoever Trump announces to replace the

governor could then become the new Chair when current Chair

Powell vacates his position next May," Kathleen Brooks, research

director at XTB, said in a note.

In premarket trading, Tesla rose 1.8% after

granting CEO Elon Musk 96 million shares worth about $29

billion.

Investor sentiment soured further last week as new U.S.

tariffs kicked in on dozens of trading partners and Trump signed

executive orders slapping fresh import duties on countries like

Canada, Brazil, India, and Taiwan despite their efforts to

negotiate better terms.

U.S. factory orders data for June is due at 10:00 a.m. ET.

Tuesday's business activity report and Thursday's jobless claims

figures are the only other key economic indicators in this

data-light week.

Atlanta Fed President Raphael Bostic will speak later in the

week.

After a big week for Big Tech earnings, companies from

various sectors including Palantir ( PLTR ), Eli Lilly ( LLY ),

and Disney ( DIS ) will report this week.

Of the 330 S&P 500 companies that have reported earnings as

of Friday, 80.6% have surpassed analyst expectations, the

highest beat rate since the third quarter of 2023, according to

data compiled by LSEG I/B/E/S.

Among early movers, Joby Aviation ( JOBY ) rose 5.3% 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 16.4%.

Chemours ( CC ) rises after reaching an

agreement

with New Jersey to resolve all environmental claims.