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Indexes up: Dow 0.69%, S&P 500 0.78%, Nasdaq 0.99%

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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

(Updates with market open prices)

By Nikhil Sharma and Pranav Kashyap

Aug 4 (Reuters) -

Wall Street's main indexes rose on Monday, clawing back

losses from the previous session's tumble as hopes for deeper

Federal Reserve rate cuts surged in the wake of an unexpectedly

weak jobs report.

At 9:33 a.m. the Dow Jones Industrial Average rose

301.22 points, or 0.69%, to 43,889.80, the S&P 500 gained

48.91 points, or 0.78%, to 6,286.21 and the Nasdaq Composite

was up 205.12 points, or 0.99%, at 20,855.25.

A dismal U.S. jobs report hammered the S&P 500 on

Friday, sending the index to its steepest intraday drop in more

than two months, while downward revisions for May and June also

compounded the blow.

The bleak data did not just trigger the market selloff

but also forced a dramatic rethink of the Fed's rate trajectory.

Traders, who had been leaning toward another pause in

September, are now seeing an 85% chance of a rate cut, as signs

of a weakening labor market pile up.

By the end of the year, markets expect at least two

quarter-point cuts - a prospect that ultimately helped steady

Wall Street. The CBOE Volatility Index, Wall Street's

so-called fear gauge, fell to 18.45 points, after surging to an

over one-month high during Friday's rout.

Investors also weighed Fed Governor Adriana Kugler's

unexpected resignation that could open the door for President

Donald Trump to put his stamp on the central bank's leadership

sooner than expected.

Trump, a vocal critic of the Fed's policy, has

repeatedly threatened to oust Chair Jerome Powell.

"If we get to a point where Jerome Powell was pushed out

earlier than he's expected to go anywhere, that is going to

unsettle markets, and that is possibly the pill that they won't

swallow," said Danni Hewson, head of financial analysis at AJ

Bell.

Meanwhile, Tesla rose 2.6% after

granting

CEO Elon Musk 96 million shares worth about $29 billion.

All S&P 500 sub-sectors were trading in the green, with

technology surging 1.1%, emerging as the top

performer.

Lyft ( LYFT ) gained 2.9% after partnering with China's

Baidu ( BIDU ) to deploy robotaxis across Europe starting next

year.

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.

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 17.5% 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 25.4%.

Spotify ( SPOT ) gained 7.6% as the music streaming platform

announced plans to raise the monthly price of its premium

individual subscription in select markets from September.

Advancing issues outnumbered decliners by a 3.77-to-1 ratio

on the NYSE and by a 3.02-to-1 ratio on the Nasdaq.

The S&P 500 posted five new 52-week highs and no new

lows, while the Nasdaq Composite recorded 29 new highs and 26

new lows.