U.S. stock futures are signaling a higher open on Monday, as investors look to recover from sharp declines over the last two sessions.

Following a pronounced sell-off that pulled the Nasdaq and S&P 500 sharply down from their record highs, traders appear ready to take advantage of lower prices to buy stocks.

Friday’s steep drop came amid growing worries about the economic fallout from President Donald Trump’s newly imposed tariffs, weaker-than-expected job figures, and a significant tumble in Amazon’s (NASDAQ:AMZN) shares.

Some optimism that the disappointing jobs report might prompt the Federal Reserve to cut interest rates next month is also encouraging buying interest.

CME Group’s FedWatch Tool shows the likelihood of a quarter-point rate cut in September rising sharply to 85.4% from 63.1% just one week ago.

Stocks tumbled more significantly on Friday following Thursday’s decline. All major indexes moved sharply lower, with the Nasdaq and S&P 500 retreating well off Thursday’s intraday record highs.

Although the indexes recovered somewhat by the close, they remained firmly in negative territory. The Nasdaq fell 472.32 points, or 2.2%, to 47,231.61. The S&P 500 dropped 101.38 points, or 1.6%, to 6,238.01, and the Dow lost 542.40 points, or 1.2%, closing at 43,588.58.

For the week, the Dow fell 2.9%, while the S&P 500 and Nasdaq declined 2.4% and 2.2%, respectively.

Wall Street’s decline was largely driven by concerns over the economic impact of President Trump’s tariff announcements, which imposed new duties ranging from 10% to 41% on goods from dozens of countries. The administration also said a 40% tariff will apply to products that are transshipped to avoid existing tariffs.

“Investors have been caught off guard, having previously hoped Trump would kick the new tariff levels down the road pending further negotiations with foreign trade partners,” said Russ Mould, investment director at AJ Bell. He added, “Instead, we’ve got new rates galore and that means investors need to spend time understanding what that means for companies in their portfolio.”

Adding to market worries was a Labor Department report showing weaker-than-expected job growth in July. Non-farm payrolls increased by just 73,000, falling short of the 110,000 jobs economists anticipated. The report also revealed significant downward revisions for May and June, reducing job growth for those months by a combined 258,000.

With revisions, May’s employment rose by 19,000 jobs and June’s by 14,000. The unemployment rate ticked up to 4.2% in July from 4.1% in June, in line with expectations.

Amazon shares plunged 8.3% after the online retail giant posted better-than-expected Q2 results but issued weaker-than-anticipated guidance for operating income in the current quarter, weighing heavily on the market.

Airline stocks experienced some of the steepest losses, with the NYSE Arca Airline Index falling 4.3%. Oil service stocks also showed significant weakness as crude prices dropped sharply, reflected in a 3.5% decline in the Philadelphia Oil Service Index.

Computer hardware, retail, and banking sectors saw notable declines, while pharmaceutical and housing stocks bucked the broader downtrend.

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