Last Updated: 4:01 PM EST
Stock indices finished today’s trading session in the red. The Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) fell 3.8%, 2.7%, and 2.08%, respectively. On top of Trump’s recession remarks (see previous update below), a recent survey by the Federal Reserve Bank of New York revealed that Americans are growing increasingly anxious about the economic outlook. The survey found that households expect a worse financial situation in the coming year.
Despite this, inflation expectations remain relatively stable, with a projected inflation rate of 3.1% over the next year. The survey also showed that Americans are becoming more pessimistic about their financial future, with the highest percentage of households expecting a worse financial situation since November 2023.
The survey’s findings are partly driven by the Trump administration’s trade policies. The tariffs imposed on China, Canada, and Mexico have led to worries about rising inflation and a potential slowdown in economic growth. Economists believe that these policies could lead to higher inflation and unemployment, which will make it more challenging for the Federal Reserve to determine the best course of action.
While the Fed is expected to maintain its current interest rate policy at its upcoming meeting, some analysts believe that it may consider cutting rates as early as June if the economy worsens. This would be a big shift in the Fed’s policy stance, as it had previously been expected to keep interest rates steady for the remainder of the year.
First Published: 4:48 AM EST
U.S. stock futures were down on Monday morning due to concerns over an economic slowdown. In a Fox News interview on Sunday, President Donald Trump refused to rule out the likelihood of a potential recession for the U.S. economy, as market worries grow over the implications of his economic policies. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were down 1.03%, 0.63%, and 0.83%, respectively, at 4:42 a.m. EST, March 10.
The previous week saw significant declines across major indices. The Dow Jones, the S&P 500, and the Nasdaq Composite fell by 2.37%, 3.1%, and 3.45%, respectively. The downside was attributed to investor concerns about changing trade policies and rising global trade tensions.
Moreover, Federal Reserve Chair Jerome Powell’s comments on Friday, indicating no immediate plans for interest rate cuts, added to market uncertainty. The ongoing trade disputes and policy changes continue to impact the economic outlook.
This week, several economic data releases are expected to influence market sentiment. Key releases include January’s Job Openings data and the New York Fed survey of consumer expectations on Monday.
Importantly, inflation data will be a primary focus this week, with the February Consumer Price Index (CPI) scheduled for Wednesday and the Producer Price Index (PPI) on Thursday. Further, the University of Michigan Consumer Sentiment reading on Friday.
Investors are now focused on upcoming corporate earnings reports from companies such as Oracle (ORCL), Dick’s Sporting Goods (DICK), UiPath (PATH), DocuSign (DOCU), D-Wave Quantum (QBTS), Dollar General (DG), Ulta Beauty (ULTA), Li Auto (LI), and Adobe Systems (ADBE).
Meanwhile, the U.S. 10-year treasury yield was down, floating near 4.263%. Simultaneously, WTI crude oil futures are trending lower, hovering near $66.92 per barrel as of the last check.
Elsewhere, European indices opened higher today, rebounding from the previous session’s losses as confidence among investors grew.
Asia-Pacific Markets Ended Lower on Monday
Most of the Asia-Pacific indices were in the red today. Concerns over China’s slowing inflation and weak domestic demand, coupled with heightened trade tensions, have added to market volatility.
Notably, Hong Kong’s Hang Seng Index was down 1.85%. Also, China’s Shenzhen Component and Shanghai Composite indices declined 0.17% and 0.19%, respectively. Further, Japan’s Topix index closed lower by 0.29%, while Nikkei index gained 0.38%.
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