Stocks rallied higher on Monday as investors bounced off Friday's steep sell-off following July's weaker-than-expected jobs report and its implications on overall health of the U.S. economy.

The Dow Jones Industrial Average (DIA  ) jumped over 580 points to close at 44,173.64, rebounding from Friday's deep rout. The broader market S&P 500 Index (SPY  ), meanwhile, posted its best day since May, climbing nearly 1.5% to settle at 6,329.94. The tech-heavy Nasdaq Composite (QQQ  ) also advanced about 2% to end the session at 21,053.58.

Market's took a downturn on Friday after the Labor Department's monthly jobs report totaled just 73,000 new positions for July and featured heavy downward revisions for May and June. Soon after its release, President Donald Trump fired the head of the Bureau of Labor Statistics and said he would be naming a replacement in the coming days.

Bank of America analyst Ebrahim Poonawala wrote in a Monday note that financial stocks could be negatively impacted this month, especially as August remains a historically weak period on Wall Street.

"Bank stocks could remain under pressure (in a seasonally weak Aug-Sept period) as the markets debate the health of the U.S. economy following Friday's weak jobs data," Poonawala wrote.

"A resilient job market remains key to informing our outlook on credit quality for the sector," he continued. "To this end, recent updates from 30+ banks in our coverage, card companies such as Capital One, alternative lenders, credit markets, all suggest that most U.S. businesses and consumers remain in relatively healthy shape. A sharp rise in the unemployment rate could negatively change this view."

With little economic data due out this week, market participants have turned their attention towards the Trump administration's trade policies for further direction as stocks trade near all-time highs. Late last week, Trump signed an executive order that updated his blanket tariff rates on many countries to 41% from the previous 10% introduced back in April. Investors are also keeping a close eye on developments between the U.S. and China, alongside Washington and the European Union.

As a factor of that little direction, meme stocks have taken the focus on Wall Street yet again as retail investors poured into American Eagle Outfitters (AEO  ) on Monday after Trump gave his support to the apparel brand following its politically controversial ad featuring actress Sydney Sweeney.

Trump called the advertisement the "'HOTTEST' ad out there," in a post on his social media platform Truth Social, sending shares up more than 23% on Monday.

Looking ahead, investors will react to earnings reports from companies including Palantir Technologies (PLTR  ), Caterpillar (CAT  ), Pfizer (PFE  ) and Yum! Brands (YUM  ) on Tuesday.