(MENAFN) U.S. equities rallied sharply on Monday as investors sought to rebound from the steep declines experienced at the close of last week, triggered by escalating worries about the health of the U.S. economy and the ramifications of new tariff measures.

The Dow Jones Industrial Average climbed 585.06 points, or 1.34%, finishing at 44,173.64. Meanwhile, the S&P 500 advanced 91.93 points, or 1.47%, reaching 6,329.94. The Nasdaq Composite surged 403.45 points, or 1.95%, to close at 21,053.58.

Market gains were widespread, with 10 out of the 11 main sectors of the S&P 500 finishing higher. Communication services and technology led the charge, surging 2.59% and 2.15%, respectively. Energy was the lone sector to retreat, falling 0.44%.

The sell-off on Friday was sparked by a weak jobs report that included significant downward adjustments to May and June employment numbers. This disappointing data also prompted U.S. President Donald Trump to dismiss the head of the Bureau of Labor Statistics.

With a relatively light calendar of economic releases this week, investors have shifted their focus toward developments in international trade.

Technology stocks powered Monday’s recovery, with Nvidia, Broadcom, Alphabet, and Meta Platforms each gaining more than 3%. Microsoft and Tesla also posted gains exceeding 2%. In contrast, Amazon extended its losses with a 1.44% drop, while Apple recorded a modest increase.

"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.

However, experts warned that upcoming economic reports could dampen the market’s momentum if they fall short of expectations. Chris Senyek, chief investment strategist at Wolfe Research, highlighted that the market remains sensitive to potential negative shocks.

"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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