So in the second session of our game I had a minor boss with a Dagger of Wounding +2. His stats weren't that impressive, but he did some damage to my PCs. The thing was, the PCs (Obviously) looted the dagger. This wasn't really a big deal at the time because I didn't think of how strong the dagger really was. My Monk (level 2) is now running around decimating every creature I throw at them. I don't want to steal the thunder from our Monk, but it feels that she is way OP. She dishes out more damage than both level 2 fighters that we have.
Any advice on how to balance the game back into standards would be helpful.