U.S. stocks jumped Monday as Wall Street tried to recover some of the steep losses suffered last week.

The Dow Jones Industrial Average traded 260 points higher, or 0.7%. The S&P 500 gained 0.8%, and the Nasdaq Composite climbed nearly 1%.

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The stock market suffered serious losses to kick off its first trading week of September, a historically tough month for equities. The S&P 500 tumbled 4.3%, registering its worst week since March 2023. The Nasdaq Composite plunged 5.8% for its worst weekly performance since 2022, while the 30-stock Dow dropped 2.9%.

These declines came after the August jobs report stoked fears of a slowing labor market. Economic data released Friday revealed that nonfarm payrolls grew by just 142,000, missing the 161,000 gain expected by economists surveyed by Dow Jones. On the other hand, the unemployment rate ticked lower to 4.2%, as economists had expected.

This week, investors will watch out for two key inflation reports that could further inform the Federal Reserve ’ s decision at its next open market committee meeting. August ’ s consumer and producer price reports are slated for release on Wednesday and Thursday morning, respectively.

The market has now priced in a 71% chance that the Fed could cut rates by 25 basis points at its next meeting and just a 29% chance of a 50-basis-point rate cut, according to CME Group FedWatch Tool.