S&P 500 futures were slightly higher as the benchmark attempts to recover from a correction following a three-week market downturn sparked by President Donald Trump’s tariff policies and declining consumer confidence. S&P 500 futures pointed to a second day of gains after falling into correction territory last Thursday. Meanwhile, Dow Jones Industrial Average futures were down by about 40 points, while Nasdaq 100 futures gained 0.3%.
The February retail sales report provided some relief to traders, as the figures were not as bad as feared. Retail sales increased by 0.2% on the month, below the Dow Jones estimate of a 0.6% increase. Excluding autos, the increase was 0.3%, aligning with economists’ expectations.
Wall Street experienced another tough week for equities, with the Nasdaq Composite sinking deeper into correction territory and the small-cap Russell 2000 nearing a bear market. The S&P 500 briefly dipped into correction territory before recovering. The Dow had its largest one-week drop since 2023, losing 4.4%.
Investors are struggling to keep pace with President Trump’s rapidly changing tariff policies, alongside growing signs of economic weakness, which have unsettled markets. Adam Parker, CEO of Trivariate Research, suggested that the market slowdown may not be temporary, stating, “This is actually like a growth slowdown.”
Treasury Secretary Scott Bessent expressed that he is not worried about the recent pullback, emphasizing that corrections are healthy and normal. However, he acknowledged there are “no guarantees” a recession would be avoided. — news from CNBC