Retail Sector Stocks Rise Amid Rate Cut Hopes as S&P 500 Snaps Losing Streak

The S&P 500 surged 1.5% on Monday, August 4, 2025, halting a four-day decline as markets rebounded from Friday's sell-off. Renewed Optimism about potential Federal Reserve rate cuts fueled gains across retail stocks, with lower borrowing costs seen as a tailwind for consumer spending.

IDEXX Laboratories led the index with a 27% rally after topping quarterly estimates and raising guidance. The animal health company's performance overshadowed broader sector movements, where chipmaker ON Semiconductor slumped on concerns over automotive sector uncertainty.

Equities climbed despite mixed economic signals. While Friday's weaker-than-expected jobs data initially sparked growth concerns, investors now view slowing hiring as increasing the likelihood of monetary policy easing. The Dow gained 1.3% while the Nasdaq advanced 2%, completing a broad-based recovery.