Mumbai, Aug. 5 -- The Nasdaq surged 403.45 points (2%) to 21,053.58, the S&P 500 shot up 91.93 points (1.5%) to 6,329.94 and the Dow jumped 585.06 points (1.3%) to 44,173.64.

Wall Street rallied as traders seized the opportunity to buy stocks at discounted prices after a recent sell-off. The previous steep decline was driven by concerns over President Trump's new tariffs, disappointing jobs data, and a sharp drop in Amazon shares. However, hopes that weak employment numbers could prompt the Federal Reserve to cut interest rates next month boosted investor sentiment. This renewed optimism helped lift the markets from their recent lows.

According to CME Group's FedWatch Tool, the chances of a quarter point rate cut in September have jumpe...