US stock futures fell Sunday night, extending last week’s brutal selloff that marked the worst weekly performance for the Dow Jones Industrial Average since 2023. The drop comes amid escalating trade tensions, concerns over slowing economic growth, and anticipation around the Federal Reserve’s next policy move.
Dow futures declined 196 points, or 0.47%. Futures tied to the S&P 500 and Nasdaq 100 also retreated, down 0.55% and 0.59%, respectively.
Wall Street is coming off another punishing week for equities. The tech-heavy Nasdaq Composite sank deeper into correction territory, while the small-cap Russell 2000 approached bear market status — nearly 20% below its recent peak. The S&P 500 briefly dipped into correction territory as well, though it managed to close back above that threshold.
Investor sentiment has been rattled by President Donald Trump’s rapidly evolving tariff strategy, including plans for broad-based reciprocal and sector-specific tariffs, and uncertainty around the broader economic outlook.
“If you look at the companies that were talking at big conferences in March, a lot of things are slowing,” said Adam Parker, CEO of Trivariate Research, in an interview on CNBC’s Closing Bell Friday. “And so, I think this is more than a growth scare already. This is actually like a growth slowdown.”
Parker added that investors may need to brace for more cautious guidance in April. “Until then, I think we have to play a little bit more defense than offense,” he said. “Because I don’t think the fundamentals are likely to ‘V-shape’ recover like they have in previous cycles.”
The upcoming week is shaping up to be critical for markets. The Federal Reserve is widely expected to keep interest rates unchanged at the conclusion of its two-day policy meeting on Wednesday. However, investors will closely monitor Chair Jerome Powell’s comments for any signs of a shift in tone. Powell has previously stated that the central bank is in “no hurry” to cut rates.
Markets will also be parsing incoming economic data for clues on the health of the economy. The US retail sales report, due Monday, is expected to provide key insight into consumer behavior. Economists surveyed by Dow Jones forecast retail sales rose by 0.6% in February, following a 0.9% decline in January. Excluding autos, retail sales are expected to have increased by 0.3%, rebounding from a 0.4% drop the previous month.
Meanwhile, trade tensions continue to weigh on investor sentiment. US President Trump said he has no intention of granting exemptions on the recently implemented steel and aluminum tariffs, according to comments reported by Reuters. The White House’s 25% tariffs on steel and aluminum imports came into effect last Wednesday. Trump indicated that reciprocal and sectoral tariffs, including those on automotive imports, will take effect on April 2.
In response, key US trading partners have announced countermeasures. The European Union said it plans to impose tariffs on $28.33 billion worth of American goods starting in April.
With geopolitical risks rising and economic indicators flashing warning signs, investors remain on edge, questioning whether the current correction could slide into a full-blown bear market.