Stocks climbed Monday as traders clawed back the steep losses seen in the previous session that were sparked by concerns over the economy and a new round of tariffs from the Trump administration. Tesla popped 1.4%, CommScope soared 80%.

“Markets are rebounding after the post-jobs slump on Friday, but sentiment turned notably last week as investors were forced to confront stagflationary economic data (soft jobs and the relatively hot PCE) and a CQ2 earnings season that finished off on a mixed note after starting strong,” wrote Adam Crisafulli of Vital Knowledge.

“Bulls are far from being defeated, and continue to hold a grip on the narrative, but will require affirmation to regain confidence,” he added.

The Dow on Friday dropped more than 500 points, while the S&P 500 and Nasdaq shed 1.6% and 2.2%, respectively. It was the worst day for the S&P 500 since May 21. The Nasdaq suffered its biggest one-day decline since April 21.

Friday’s sell-off was driven by a worse-than-expected July jobs report and jitters about President Donald Trump’s new modified tariff rates. Trump signed an executive order late last week that updated his “reciprocal” tariffs on dozens of U.S. trading partners, ranging from Syria to Taiwan, with updated duties ranging from 10% to 41%.

Investors are now digesting what a weakened U.S. labor market could mean for the weeks ahead. Traders are expecting reduced chances for a September interest rate cut after policymakers last week held the benchmark overnight borrowing rate in place for the fifth-straight meeting.

The market is also bracing for a historically weak month. August is the worst month for the Dow Jones Industrial Average in data going back to 1988, and the second worst for the S&P 500 and Nasdaq Composite, according to the Stock Trader’s Almanac.