Stock futures showed a slight decline early Tuesday, despite two consecutive days of gains that offered relief from recent market downturns. The Dow Jones Industrial Average futures dropped 77 points, or 0.18%, while the S&P 500 futures decreased by 0.23%. Nasdaq 100 futures fell by 0.33%.
Market’s Recent Turnaround After Weeks of Struggles
These movements follow a strong performance on Wall Street, which saw two straight winning days. The recent rally marks a shift after several weeks of market difficulties, triggered by concerns over soft economic data and the uncertain tariff policies of President Donald Trump. Investors have been wary of the U.S. economy’s financial health amid these factors.
S&P 500 and Nasdaq Show Mixed Recovery
The S&P 500 officially entered correction territory last week, but it has recovered some ground with the rallies seen on Friday and Monday. However, the tech-heavy Nasdaq Composite remains in correction, meaning it has dropped at least 10% from its recent high. Despite the recent recovery, all three major indexes are still down for the year, highlighting the strength of the market’s pullback.
Attention Shifts to Federal Reserve’s Policy Meeting
As investors continue to watch updates from the White House, all eyes are now on the Federal Reserve’s two-day policy meeting, which began Tuesday. Traders will closely observe Wednesday’s interest rate decision and the following press conference with Fed Chair Jerome Powell. According to CME’s FedWatch tool, there is a 99% chance that the Fed will maintain interest rates.
Expert Insight on Market’s Recent Challenges
Mohamed El-Erian, chief economic advisor at Allianz, commented on the recent market correction: “We had two distinct stages to what was the fifth fastest correction since World War II. The first one was a growth scare, followed by some troubling technicals. Most of the bad technicals are behind us. The key questions now are: Will the growth scare be contained? And will the hope in the Fed put prove realistic?”
Economic Data and Updates on the Horizon
Before Wednesday’s rate decision, investors will keep an eye on economic reports due Tuesday morning. These will include data on imports, housing, building, and production. No major earnings reports are expected on Tuesday.
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