Stock futures slipped on Monday night after two consecutive days of gains provided some relief from the recent market sell-off.
Dow Jones Industrial Average futures dropped by 84 points, or 0.2%, while S&P 500 futures fell 0.24%, and Nasdaq 100 futures decreased 0.34%.
These moves come after Wall Street experienced a two-day winning streak, marking a shift following several tough weeks. Soft economic data and uncertainty surrounding President Donald Trump’s tariff policy had left investors on edge about the U.S. economy’s outlook.
S&P 500 and Nasdaq Continue Recovery, But Still in Correction
Despite the recent bounce back, the S&P 500 officially entered correction territory last week, though it has made notable progress in its recovery rally on Friday and Monday. The Nasdaq Composite, which is heavily tech-weighted, remains in a correction, having fallen at least 10% from its recent high. All three major indices remain in negative territory for the year, reflecting the depth of the market pullback.
Fed Meeting in Focus
As traders digest the recent market moves, their attention is shifting to the Federal Reserve’s two-day policy meeting starting Tuesday. The market is highly focused on Wednesday’s interest rate decision, with Fed futures indicating a 99% chance the central bank will hold rates steady, according to CME’s FedWatch Tool.
Investors will also closely watch Fed Chair Jerome Powell’s press conference for clues on the central bank’s economic outlook and future monetary policy decisions.
Experts Weigh In on Market Outlook
“All the bad technicals are behind us,” said Mohamed El-Erian, Chief Economic Advisor at Allianz, referring to the market’s recent correction. “The questions now are: Will the growth scare be contained? And will the hope in the Fed put prove realistic or not?”
Before Wednesday’s policy announcement, investors will monitor upcoming economic data on imports, housing, building, and production, scheduled for release on Tuesday morning.
With no major earnings reports expected on Tuesday, market participants will be looking for any new economic signals that might influence the Federal Reserve’s next steps.
Related topics:
USD Experiences Modest Recovery Amid Cautious Markets
GBP Movement Mirrors USD Trends, Says Scotiabank
Asian Markets Gain as US Inflation Data Softens; Global Trade Tensions Persist
