Stock Futures Drop as Wall Street Faces Uncertainty and Economic Slowdown Concerns
Stock futures dropped early on Monday following a tough week for the markets, with the Dow posting its worst performance since 2023. Dow futures fell 213 points (0.51%), while S&P 500 and Nasdaq futures also saw declines of 0.63% and 0.71%, respectively. Last week, the Nasdaq entered correction territory, and the Russell 2000 came close to a bear market. Investor anxiety was fueled by growing concerns over President Donald Trump’s fluctuating tariff policies and signs of a potential economic slowdown. These factors have left many wondering if the stock market correction might evolve into a bear market.
Investors are increasingly worried about the economy’s health as several indicators point to a slowdown. Adam Parker, CEO of Trivariate Research, remarked that the situation feels more like a growth slowdown than a mere growth scare. He emphasized that the market is unlikely to recover as sharply as in previous cycles, suggesting investors may need to be more defensive in their strategies. With corporate growth showing signs of deceleration, the upcoming earnings reports will likely provide more clarity on whether negative guidance is expected in April.
This week, the Federal Reserve will conclude its policy meeting on Wednesday, with most analysts expecting it to keep interest rates steady. Fed Chairman Jerome Powell’s comments will be critical, especially regarding the outlook on rate cuts. Investors are also eyeing the U.S. retail sales report, which will provide insights into consumer behavior amid growing fears of an economic downturn. The report, set to be released on Monday, is expected to show a 0.6% increase in retail sales for February after a decline in January.
Meanwhile, global markets displayed mixed movements. While Asian markets showed some gains, with the Nikkei 225 rising by 0.93%, trade tensions continued to escalate. President Trump confirmed that no exemptions would be applied to steel and aluminum tariffs, set to take effect on April 2. This has prompted retaliatory measures from trade partners, including the European Union, which plans to impose tariffs on U.S. goods. This growing uncertainty in international trade is likely to continue influencing market sentiment in the coming days.
SOURCE: CNBC