U.S. stocks close higher as investors buy dip
The Dow Jones Industrial Average rose 585.06 points, or 1.34 percent, to 44,173.64. The S&P 500 added 91.93 points, or 1.47 percent, to 6,329.94. The Nasdaq Composite Index increased by 403.45 points, or 1.95 percent, to 21,053.58.
Ten of the 11 primary S&P 500 sectors ended in green, led by communication services and technology, which rose 2.59 percent and 2.15 percent, respectively. Meanwhile, energy bucked the trend by dropping 0.44 percent.
Friday's sell-off followed a disappointing jobs report that included substantial downward revisions to employment figures for May and June. The report also led to U.S. President Donald Trump firing the head of the Bureau of Labor Statistics.
With a relatively quiet week ahead for economic data, market attention has turned to international trade.
Technology stocks led Monday's rebound, with Nvidia, Broadcom, Alphabet and Meta Platforms each gaining more than 3 percent. Microsoft and Tesla added over 2 percent. Amazon fell 1.44 percent, extending its losses from Friday, while Apple added slightly.
"Today is sort of a bounce-back day," said Sam Stovall, chief investment strategist at CFRA Research. "Stocks tend to pop after a drop, so that's what's happening."
"S&P 500 gained ground as traders rushed to buy the dip after Friday's sell-off. Traders bet that weak job market data will force the Fed to cut rates, which will be bullish for stocks," said Vladimir Zernov, analyst with market information supplier FX Empire.
Still, analysts warned that further economic disappointment in upcoming reports could weigh on stocks in coming weeks. Chris Senyek, chief investment strategist of Wolfe Research, cautioned that the market remains vulnerable to any negative surprises.
"While market expectations are rising for the Federal Reserve to restart its easing cycle in September, weaker economic data is beginning to worry investors that the central bank is far behind the curve at the same time as tariff-induced inflation (whether transitory or not) hits," Senyek said.
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