Stock futures dropped early on Monday, following a tough week for U.S. equities, which saw the Dow Jones Industrial Average post its worst performance since 2023. Dow futures were down 213 points, or 0.51%, indicating a negative start to the week. S&P 500 futures and Nasdaq 100 futures also showed losses, dipping 0.63% and 0.71%, respectively.
These declines come after a particularly rough week for Wall Street. The Nasdaq Composite, which had already entered correction territory, sank further, and the Russell 2000, a small-cap index, came close to a bear market, with a drop of 20% from its peak. Meanwhile, the S&P 500 briefly dipped into correction territory before rebounding.
Market Struggles Amid Tariff Policy and Economic Weakness
The recent market turmoil has been largely driven by ongoing uncertainty surrounding President Donald Trump’s rapidly changing tariff policies and increasing signs of economic weakness. Many investors are concerned that the current stock market correction could spiral into a full-blown bear market.
Adam Parker, CEO of Trivariate Research, expressed his concerns on CNBC’s Closing Bell on Friday, noting that signs of a slowing economy are becoming more apparent. “A lot of things are slowing… This is more than a growth scare. This is actually a growth slowdown,” he said. Parker added that he does not expect a “V-shaped” recovery, suggesting that a more defensive approach might be needed as the market faces further volatility.
Federal Reserve’s Role in Market Outlook
Wall Street is preparing for a big week in markets, with the Federal Reserve’s policy meeting set to conclude on Wednesday. The central bank is widely expected to hold interest rates steady, though investors will be paying close attention to comments from Fed Chair Jerome Powell for any signals of a shift in policy. Powell has previously stated that the Fed is in “no hurry” to lower interest rates, and any change in tone could significantly impact investor sentiment.
Economic Data in Focus
Investors are also looking ahead to key economic data that could shed light on the state of the U.S. economy. One of the most closely watched reports is the retail sales data, set to be released on Monday. Economists expect retail sales to have increased by 0.6% in February, which would provide insight into consumer spending trends and overall economic health. With economic uncertainty on the rise, any sign of a slowdown in consumer activity could further weigh on market sentiment.
Overall, the market is entering a volatile period, with a mix of geopolitical tensions, tariff policies, and economic signals contributing to investor unease. The next few days will be crucial in determining whether the current market correction will deepen or stabilize.
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