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us stock futures fall amid market concerns

Stock Concerns

Stock Concerns

US stock futures fell on Monday, signaling that March’s market struggles are set to continue in a week highlighted by the Federal Reserve policy meeting. S&P 500 futures dropped 0.6%, while Dow Jones Industrial Average futures fell 0.5%. Contracts on the tech-heavy Nasdaq 100 slid about 0.7%.

The gauges are coming off a week that saw the benchmark S&P 500 enter correction territory and the Dow book its worst weekly performance since March 2023. Last week, the S&P 500 and Nasdaq Composite dropped 2.3% and 2.4%, respectively, marking their fourth consecutive weekly decline. The Dow also slid 3.1%, recording its worst weekly performance since 2023.

Wall Street will be focused on the Federal Reserve in the coming week, looking to its decision on interest rates and Chair Jerome Powell’s insights regarding the path forward — and the general health of the US economy. The expectation is that the Fed will hold rates steady, so investors will closely watch the Fed’s latest projections, which map out policymakers’ expectations for the rate path going forward. Meanwhile, February retail sales are set for release on Monday, giving a state of play for the American consumer.

Economists expect a bounce back from January’s 0.9% drop, looking for a 0.6% rise. This pulse check comes after the University of Michigan’s latest consumer sentiment survey.

Market concerns and Fed policy focus

Quarterly earnings results are due this week from Nike and General Mills, among others. In an event that could herald change for the beleaguered AI sector, Monday brings Nvidia’s annual GTC conference, which has the potential to reveal stock-shifting developments in new tech. Oil prices have risen for a second consecutive day after China revealed plans to increase oil consumption.

The biggest weekend news to start the week was China’s State Council unveiling its “special action plan” on Sunday, aimed at boosting domestic consumption. The 30-point plan includes measures to increase household income, reduce financial burdens, and improve the overall consumption environment to encourage spending. From the US, Treasury Secretary Bessent spoke in a TV interview, making headlines with two key points:

“He welcomed falling stock prices, calling it a healthy correction.”

“He wouldn’t rule out the possibility of a recession, adding to cautious sentiment.”

US equity index futures opened lower after Globex reopened for the week’s trade.

Oil prices spiked but later pulled back, with Middle East tensions in focus—Houthi attacks on US naval ships and Trump’s warnings to Iran and the Houthis were cited as factors. In FX markets, USD/JPY swung within a 40-point range, with no major yen-specific news beyond Japan’s Prime Minister Ishiba denying FX manipulation. Other major currencies traded in tight ranges, with AUD failing to catch a bid despite China’s 30-point consumption boost plan.

Investors will be keeping a close watch on these developments as they navigate a market filled with both challenges and opportunities. These losses came as President Donald Trump’s escalating tariff policies and growing recessionary fears in the US rattled financial markets. Investors are now awaiting US retail sales data on Monday for insights into consumer spending trends.

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