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U.S. stock index futures dropped on Monday as investor concerns grew over the potential economic impact of ongoing trade tariff uncertainties.
As of 07:00 ET (11:00 GMT), Dow Jones Futures fell 103 points (-0.3%), S&P 500 Futures declined 11 points (-0.2%), and Nasdaq 100 Futures edged down 25 points (-0.1%).
Although Wall Street’s major indices ended higher on Friday, the week was particularly rough. The Dow Jones Industrial Average suffered its steepest one-week decline since 2023, dropping 4.4%. Meanwhile, the NASDAQ Composite slipped further into correction territory, and the S&P 500 briefly dipped into the same zone.
Recession Concerns Rise as Fed Meeting Looms
Investor anxiety deepened following comments from U.S. Treasury Secretary Scott Bessent, who told NBC on Sunday that there were “no guarantees” the U.S. economy would avoid a recession in 2024. This statement came just a week after President Donald Trump also declined to rule out the possibility of an economic downturn.
With a key Federal Reserve meeting scheduled this week, investors are closely watching for economic signals. While the Fed is expected to keep interest rates unchanged, growing fears of a recession and mixed economic data could influence its stance.
Trade War Risks Cloud Economic Outlook
Uncertainty surrounding U.S. trade policy remains a major market concern. Trump’s inconsistent stance on tariffs, coupled with fresh threats of additional trade barriers, has kept investors on edge.
The American Chamber of Commerce to the EU warned on Monday that an escalating trade conflict between the U.S. and Europe could jeopardize $9.5 trillion in transatlantic trade annually.
Meanwhile, recent data suggests inflation remains persistent, even as consumer sentiment and labor market conditions weaken—potential factors that could prompt the Fed to reconsider its hawkish policies.
Retail Sales Expected to Rebound
Markets are also anticipating the release of U.S. retail sales data for February, which is projected to show a 0.6% monthly increase, following a sharp 0.9% decline in January—the largest drop since early 2024.
Despite the expected rebound, consumer sentiment remains fragile, with concerns mounting over the negative impact of Trump’s tariffs on purchasing power.
Oil Prices Rise Amid Middle East Tensions
Crude oil prices surged on Monday as geopolitical tensions escalated following U.S. airstrikes against Yemen’s Houthis.
At 07:00 ET (11:00 GMT):
- Brent crude rose 1.3% to $71.49 per barrel
- West Texas Intermediate (WTI) crude climbed 1.3% to $67.80 per barrel
The Houthis, known for targeting commercial vessels in the Red Sea, pose a significant threat to global shipping, as the region accounts for 15% of global trade traffic. Rising conflict has heightened concerns over potential disruptions to vital shipping routes, further pressuring oil markets.
