Futures for US Stocks Decline after Wall Street Recovers from A Market Sell-off

As industrial and energy shares recovered on economic data that, despite missing estimates, managed to allay fears of an impending recession, US equities rose for a second day, continuing the comeback from a steep decline that hit 10% last week.

Despite a decline in most megacaps, over 90% of the S&P 500 businesses saw increases. The benchmark’s equal-weighted version, which gives Target Corp. the same influence as Apple Inc., increased by 1.3%. Mixed retail sales provided some reassurance that consumer spending is not collapsing, but the most recent economic data did nothing to change traders’ views on the Federal Reserve outlook. Stocks kept moving away from technically oversold levels as the tariff commotion died.

David Lefkowitz of UBS Global Wealth Management states that “corrections during a bull market typically represent good purchasing opportunities.” “The market saw a surge in policy uncertainty at a time when investor sentiment and positioning were relatively high. However, much of this has since been cleared up.

According to Michael Wilson of Morgan Stanley, seasonality is expected to improve in the second half of March, and sentiment/positioning indicators have significantly loosened. The lower-quality, higher-beta equities that have fallen off the most may use that as support for a brief rally.

“Whether such a rally is likely to extend into something more durable and mark the end of the volatility we’ve seen year to date is the more important question,” Wilson added. “The quick response is probably not.”

The S&P 500 had a 0.6% increase. By 0.55%, the Nasdaq 100 increased. There was a 0.9% increase in the Dow Jones Industrial Average. A Magnificent Seven megacap gauge had a 1.1% decline. The Russell 2000 saw a 1.2% increase.

At 4.30%, the yield on 10-year Treasuries decreased by one basis point. There was a 0.3% decline in the Bloomberg Dollar Spot Index. In February, US retail sales increased less than anticipated, while the previous month’s sales were revised downward. However, the earlier decline was reversed last month when the so-called control-group sales, which the government uses to calculate goods expenditure for gross domestic product, rose 1%.

The February retail sales data released this morning, according to Jennifer Timmerman of the Wells Fargo Investment Institute, “provides evidence of a limited, modest economic slowdown, rather than signaling a gathering recession.”

Policymakers may adopt a wait-and-see attitude this week as they evaluate the effects of Donald Trump’s trade policies on the economy. The market will look for hints on future courses from Fed officials’ revised economic estimates and Chair Jerome Powell’s news conference, as the Fed is likely to keep rates unchanged on Wednesday.

As the US looks to revamp its economic policies, Treasury Secretary Scott Bessent, a former hedge fund manager, stated that he is not concerned about the recent stock decline.

Bessent stated on Sunday on NBC’s Meet the Press that corrections are healthy and typical, having worked in the investing industry for 35 years. The market doesn’t concern me. The markets will perform well in the long run if we implement sound taxation, deregulation, and energy security.

Key events this week:

• US industrial production, import price index, and housing starts Tuesday
• Wednesday’s rate decision by the Bank of Japan
• Wednesday’s Federal Reserve rate decision
• Prime rates for loans from China on Thursday
• rate decision of the Bank of England, Thursday
• Existing home sales, unemployment claims, and the US Philadelphia Fed manufacturing index Thursday
• Consumer Confidence in the Eurozone, Friday
• John Williams of the Fed talks on Friday

Among the main market movements are:

Stocks

• As of 4 p.m., the S&P 500 had increased by 0.6%. Time in New York
• By 0.55%, the Nasdaq 100 increased.
• The average of the Dow increased by 0.9%.

Currencies

• The Bloomberg Dollar Spot Index had a 0.3% decline.
• At $1.0924, the euro increased 0.4%.
• At $1.2994, the British pound increased by 0.5%.
• The value of the Japanese yen dropped 0.4% to 149.17 USD.

Cryptocurrencies

• Bitcoin reached $84,141.79, up 1.1%.
• Ether’s 2.2% increase to $1,935.75

Bonds

• At 4.30%, the yield on 10-year Treasuries decreased by one basis point.
• At 2.82%, Germany’s 10-year yield dropped six basis points.
• The 10-year yield in Britain dropped three basis points to 4.64%.

Commodities

• At $67.52 a barrel, West Texas Intermediate crude increased by 0.5%.
• Spot gold increased to $3,001.24 an ounce, up 0.6%.