The U.S. stock market rose on Monday as investors bought back in after a sharp drop in the previous session triggered by concerns about the economy and a new round of tariffs from the Trump administration.
The Dow Jones Industrial Average rose 260 points, or 0.6%. The S&P 500 added 0.7%, while the Nasdaq Composite jumped 1%, supported by a 2% gain in Tesla shares.
“The market is recovering from Friday’s post-jobs slump, but sentiment clearly changed last week as investors grappled with stagflationary economic data (weak hiring and a relatively warm PCE index) and a second-quarter earnings season that ended with mixed results after a strong start,” wrote Vital Knowledge’s Adam Crisafulli.
Stocks plunged on Friday after a weaker-than-expected jobs report, accompanied by massive revisions to the May and June employment figures. Shortly after the report, President Donald Trump fired the head of the Bureau of Labor Statistics (BLS) and then announced that he would name a new commissioner within days.
Concerns also arose over Trump’s new updated tariffs. Trump signed an executive order last week that revised “reciprocal” tariff rates on dozens of U.S. trading partners, from Syria to Taiwan, with new rates ranging from 10% to 41%.
Investors are now awaiting corporate earnings reports this week. Palantir is scheduled to report results after the market closes Monday, while AMD is due to report on Tuesday.
Markets are also bracing for a historically weak August. According to the Stock Trader’s Almanac, August was the worst month for the Dow Jones Industrial Average since 1988, and the second-worst month for the S&P 500 and Nasdaq Composite.
