(These are the market notes on today’s action by Mike Santoli, CNBC’s Senior Markets Commentator. See today’s video update from Mike above.) The dip-buying impulse remains intact. Bespoke Investment Group reports that 2025 has been the second-most-profitable year since 1993 when blindly buying the S & P 500 after a down day. The market treating Friday’s setback as a standard seasonal shakeout for now: Overbought indexes, a bit of speculative froth and complacency about the state of the economy under tariffs set us up for a bit of a jolt, then came Friday’s tumble accompanied by a pop in the VIX above 20. S & P 500 still hasn’t recouped all of Friday’s pullback, can’t sound an “all clear” yet. We broke an unusually long streak above the 20-day moving average Friday, today’s bounce takes the index just above it. The AI plays reasserting itself after most Mag7 earnings confirmed the broad theme is intact. NDX the clear outperformer. Not many macro releases to chew over this week, so it’s mostly about seeing if last week’s dip softened up stocks enough to lower the bar for the remaining earnings reports to trigger more favorable stock responses. The jarring shortfall in job growth and the downward revisions reset the bull case from “The economy seems resilient enough to withstand a wait-and-see Fed” to “Economy is slowing enough to prompt a September rate cut to underpin the rally.” Treasury yields getting no real lift after Friday’s severe drop post-jobs report, the dollar backsliding as well, helping to prop up rate-sensitive groups like homebuilders. Meme stocks reenergized. JOBY , OPEN , the quantum stocks flying… Palantir earnings reaction will be a tell for the speculative crowd.
