On March 17, U.S. stock index futures experienced a downturn as comments from Treasury Secretary Scott Bessent added to concerns about an economic slowdown. Attention was also on the Federal Reserve’s upcoming meeting for any tariff-related signals.
In a Sunday interview with NBC, Bessent stated that there are “no guarantees” the United States will avoid a recession. His remarks amplified existing worries about a potential economic downturn in the world’s largest economy. President Donald Trump’s tariff policies have further heightened fears of a trade war-induced recession.
Trump has made it clear that there will be no exemptions for steel and aluminum tariffs, with reciprocal and sectoral tariffs set to take effect on April 2. The Fed’s rate decision is scheduled for Wednesday, with market expectations firmly anticipating that the U.S. central bank will maintain current interest rates, according to data compiled by LSEG.
Goldman Sachs analysts noted that FOMC participants will need to reassess their projections now that the first tariffs have been implemented and the White House appears poised to impose larger tariffs.
At 05:34 a.m. ET, Dow E-minis were down 187 points, or 0.45%, S&P 500 E-minis were down 24.75 points, or 0.44%, and Nasdaq 100 E-minis were down 87.75 points, or 0.45%. Futures tracking the small-cap Russell 2000 index lost 0.6%.
The previous week, both the S&P 500 and the Nasdaq marked their fourth consecutive weekly declines, with the Dow also experiencing a weekly drop. The blue-chip Dow is nearing a correction, about 2% away and down roughly 8% from its all-time high.
Two encouraging inflation reports provided some relief from last week’s Wall Street selloff, leading to “dip buying” on Friday and significant one-day percentage gains for the S&P 500 and the Nasdaq.
Focus will be on February’s retail sales report and the monthly New York Fed manufacturing data, both scheduled for 08:30 a.m. ET. Attention will also be on developments related to the Ukraine-Russia war, as Trump planned to speak to Russian President Vladimir Putin on Tuesday.
— news from USA TODAY