Stock futures fell early Monday, extending last week’s losses as investors remained cautious about the economy and Federal Reserve decisions. Dow Jones futures dropped 170 points (0.41%), while S&P 500 and Nasdaq 100 futures declined by 0.52% and 0.62%, respectively.
Markets Struggle Amid Uncertainty
Wall Street is dealing with another rough week. The Nasdaq Composite sank deeper into correction territory, while the small-cap Russell 2000 edged closer to a bear market, down nearly 20% from its peak. The S&P 500 briefly slipped into correction mode before recovering slightly.
Investors are worried about shifting trade policies under President Donald Trump and economic slowdown signs, raising fears that the correction could turn into a bear market.
Concerns Over Economic Growth
Experts are signaling a slowdown. Adam Parker, CEO of Trivariate Research, shared concerns about corporate earnings during an interview with CNBC’s Closing Bell on Friday.
“If you look at companies that spoke at big conferences in March, many are showing signs of slowing growth,” Parker said. “This is not just a temporary concern—it could be an actual economic slowdown.”
He suggested that investors should take a cautious approach, as a fast “V-shaped” recovery seems unlikely based on past market trends.
Federal Reserve Meeting in Focus
This week’s key event is the Federal Reserve’s policy meeting, which concludes on Wednesday. While the Fed is expected to keep interest rates unchanged, investors will closely watch Chair Jerome Powell’s comments for signals about future policy. Earlier this year, Powell stated that the Fed is in “no hurry” to cut interest rates, adding to market uncertainty.
Upcoming Economic Reports
Investors are awaiting fresh economic data for insights into the state of the economy. The U.S. retail sales report, due Monday, will show consumer spending trends. Economists surveyed by Dow Jones expect retail sales to rise 0.6% in February.
Other key indicators, including job market data and corporate earnings, will also be closely analyzed to determine if the economic slowdown is temporary or a longer-term issue.
What’s Next for Investors?
As Wall Street prepares for another volatile week, traders are weighing concerns about interest rates, economic reports, and earnings. Investors will monitor these developments closely, hoping for clearer signals on where the economy is headed.
