US stock futures fall on economic concerns; Fed meeting due
U.S. stock index futures fell Monday as investors continued to fret that the uncertainty over trade tariffs will weigh heavily on the world’s largest economy, News.Az reports citing Investing.
At 07:00 ET (11:00 GMT), Dow Jones Futures slipped 103 points, or 0.3%, S&P 500 Futures fell 11 points, or 0.2%, and Nasdaq 100 Futures dropped 25 points, or 0.1%.
The main Wall Street indices closed higher Friday, but the week as a whole was brutal, with the Dow Jones Industrial Average having its biggest one-week drop since 2023, losing 4.4%.
The NASDAQ Composite sank deeper into correction territory last week, while the S&P 500 also briefly fell into correction territory.
More losses are expected Monday after U.S. Treasury Secretary Scott Bessent, in an interview with NBC on Sunday, said there were "no guarantees" that the U.S. economy will avoid recession this year.
This came just a week after U.S. President Donald Trump declined to rule one out.
Fed meeting in focus
Investors were also on guard for more economic cues from a Federal Reserve meeting this week, with the central bank widely expected to keep rates unchanged.
Trump’s flip-flopping on trade tariffs against major trading partners, coupled with his continued threats of more tariffs, were a key point of uncertainty for markets in recent months.
The potential trade war between the U.S and Europe could jeopardize transatlantic business worth $9.5 trillion annually, the American Chamber of Commerce to the EU warned on Monday.
Uncertainty over the economy also contributed to growing fears of a recession, with the Fed likely to comment on this trend.
Retail sales to rebound
On the economic calendar, markets will be eyeing the release of U.S. retail sales for February, for a gauge of the health of the American consumer.
The preliminary measure for February is expected to rise 0.6% on the month, rebounding from the prior month’s hefty 0.9% fall - the largest month-over-month decline in retail sales since January 2024.
However, even with this expected rebound, sentiment remains weak with American consumers fretting over the negative effects of Trump’s tariffs on their purchasing power.
Both U.S. and global economic growth is set to be lower than previously projected, according to the latest estimates from the Organisation for Economic Co-operation and Development.
Crude rises after strikes on Houthis
Oil prices rose Monday, buoyed by the potential for supply disruptions, after the U.S. launched a series of strikes against Yemen’s Houthis, vowing to continue attacking until the Iran-aligned group ends its assaults on shipping.
At 07:00 ET (11:00 GMT), Brent futures rose 1.3% to $71.49 a barrel, while U.S. West Texas Intermediate futures rose 1.3% to $67.80 a barrel.
The Houthis have a history of targeting commercial vessels in the Red Sea, a crucial corridor for global commerce, accounting for about 15% of the world’s shipping traffic.
The heightened conflict has raised concerns over potential disruptions to vital shipping routes in the Red Sea, leading to a notable impact on global oil markets.
Elsewhere, U.S. President Donald Trump said on Sunday that he will speak to Russian counterpart Vladimir Putin on Tuesday, as his administration works to broker peace between Russia and Ukraine.
Ukraine last week accepted a tentative ceasefire deal proposed by the U.S. at talks happening in Saudi Arabia, although it was unclear what the terms were.
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