US Stocks Rebound Sharply After Labor Data Sparks Sell-Off

Wall Street staged a robust recovery Monday as the S&P 500 surged 1.4%, the Dow Jones Industrial Average climbed 1.3%, and the Nasdaq Composite led gains with a 1.7% advance. The rally follows Friday's market rout—the worst weekly decline in months—triggered by disappointing July jobs data and downward revisions to prior months' figures.

President Trump's extraordinary public rebuke of the Bureau of Labor Statistics, including firing its commissioner, underscores growing political tensions around economic reporting. Market participants now price in nearly 90% probability of a September Fed rate cut after the weak employment figures.

Trade uncertainty persists as updated tariff implementations loom, creating crosscurrents for risk assets. The abrupt reversal from last week's selloff demonstrates how macroeconomic data points continue to drive violent rotations across equity markets.