U.S. stock index futures fell Monday evening after steep declines on Wall Street, as investors weighed recession risks stemming from President Donald Trump’s tariff policies.
S&P 500 Futures fell 0.5% to 5,595.0 points, while Nasdaq 100 Futures dropped 0.8% to 19,306.0 points by 20:02 ET (00:02 GMT). Dow Jones Futures were largely unchanged at 41,965.0 points.
Recession fears spark sell-off, Nasdaq slumps 4%
A Reuters poll showed that economic risks are escalating for Mexico, Canada, and the U.S. due to the turbulent rollout of Trump tariffs, creating significant uncertainty for businesses and policymakers.
Concerns over inflation in the U.S., which were already growing, have intensified, making it more likely that the Federal Reserve will hold off on policy changes for the foreseeable future. Meanwhile, the risk of recession is increasing across all three countries, according to the survey.
Trump has refrained from predicting whether the U.S. might experience a recession in 2025 amid escalating trade tensions.
Stock markets experienced notable declines on Monday, with the S&P 500 falling 2.7%, the Dow Jones Industrial Average 2%, and the NASDAQ Composite slumping 4%, primarily driven by substantial losses in major technology companies.
Tesla Inc (NASDAQ:TSLA) shares saw a 15% drop, while market darling NVIDIA Corporation (NASDAQ:NVDA) stocks fell 5.1%.
Broadcom Inc (NASDAQ:AVGO) shares fell 5.4%, while Arm Holdings (NASDAQ:ARM) stock declined 7.3%.
Tracking the downturn in Bitcoin, shares of Strategy, previously known as MicroStrategy (NASDAQ:MSTR), slumped 16.7%. Coinbase Global Inc (NASDAQ:COIN) stock plunged 17.6%.
Govt shutdown risks add to the negative mood; US CPI awaited
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A government shutdown is possible if Congress fails to pass a temporary funding bill before the fiscal deadline on March 14.
The Republican-controlled House introduced a six-month stopgap spending bill on March 8, with a vote scheduled for Tuesday.
If approved by Congress, the proposal will require 60 votes in the Senate to reach Trump’s desk, necessitating some Democratic support to avert a government shutdown.
Meanwhile, market participants now keenly await the crucial consumer price inflation report due on Wednesday, which will provide key insights ahead of the Federal Reserve’s interest rate decision scheduled for next week.
Last week, Fed Chair Jerome Powell indicated that the central bank would maintain a patient stance on interest rates, saying the central bank was cautiously assessing Trump’s recent economic policy changes, including tariffs and federal worker layoffs.
