U.S. stocks rose on Monday, giving signs of a rebound on Wall Street after stocks ended last session lower following an August jobs report that left market traders uncertain about possible interest rate cuts by the Federal Reserve.

Analysts at Vital Knowledge suggest that the rise in stocks was not driven by any specific news since Friday’s close but rather by bargain buying due to oversold conditions and expectations of monetary support.

Major Wall Street indices fell on Friday after the August payroll numbers indicated a continued slowdown in the U.S. labor market, suggesting that the Federal Reserve may sharply reduce borrowing costs at its next meeting on September 17-18.

For the week, the S&P 500 and Dow Jones Industrial Average recorded their largest weekly declines since March of last year, while the NASDAQ Composite experienced its most significant drop since January 2022.

Possible Fed Rate Cut in the Spotlight

Investor bets that the Fed will cut rates by 25 basis points stand at 73% in Monday trading, according to CME Group’s FedWatch tool.

Meanwhile, the probability of a 50 basis point cut stands at 27% after briefly exceeding 50% in response to the jobs data.

The odds highlight the uncertainty surrounding how the Fed will react to the jobs report.

On Friday, Fed Governor Christopher Waller stated that “the time has come” for the Fed to lower rates, though he remained open about the extent and timing of the cuts.

Boeing Shares Rise Ahead of Market Open After Reaching Tentative Agreement with Union

Boeing (BA) shares rose in Monday premarket trading after reaching a tentative agreement on a 25% wage hike for its main union. This agreement is likely to avert a damaging strike that could increase pressure on the aircraft maker.

In addition to the wage increase, the proposed four-year agreement includes a commitment to build a new aircraft in the U.S. Pacific Northwest, improved retirement benefits and increased union involvement in aircraft quality.

The leadership of the union, which represents about 30,000 workers, has recommended that its members support the agreement. However, if it is refused and two-thirds vote in favor of the strike, the workers could organize a work stoppage at midnight on Friday.

A labor action would likely increase scrutiny of Boeing’s new CEO, Kelly Ortberg, who is focused on improving the company’s finances and rebuilding its reputation following a dangerous mid-flight incident in January.

Meanwhile, cryptocurrency-linked stocks posted gains ahead of the market open. Bitcoin, the largest cryptocurrency, rose on Monday, extending its upward momentum for the third consecutive day.

Oil Prices Rise

Oil prices held on to Monday’s gains as traders watched the effect of a possible hurricane on the U.S. Gulf Coast and the market’s response to last week’s nonfarm payrolls report.

The U.S. National Hurricane Center indicated over the weekend that a weather system in the Gulf of Mexico is expected to develop into a hurricane before hitting the northwest U.S. Gulf Coast, an area critical to U.S. refining capacity.

Additionally, the potential for lower interest rates supported crude oil prices, as lower financing costs could theoretically stimulate economic activity and increase demand for oil.