Stock market update: Dow, S&P 500, and Nasdaq futures drop after S&P suffers its worst weekly decline since September.
Wall Street braced for more volatility as U.S. stock futures dropped sharply Sunday evening, extending last week’s heavy losses. Investors are grappling with fresh concerns over inflation and trade policies under President Trump’s administration, adding to market jitters.
Futures tied to the Dow Jones Industrial Average fell 0.5%, while S&P 500 futures slipped 0.7%. Nasdaq futures saw the steepest drop at 1%, following a tough week where all three indexes lost more than 2%, marking the S&P 500’s worst performance since September.
Economic Uncertainty Weighs on Markets
Market sentiment remains fragile amid trade war anxieties, particularly as negotiations with Mexico and Canada remain unsettled. In an interview on Fox News, President Trump acknowledged concerns about a slowing economy, calling it “a period of transition.” However, his unpredictable tariff policies continue to shake investor confidence.
Adding to the uncertainty, Mark Carney is set to take over as Canada’s prime minister at a time when the country faces economic challenges, fueled in part by Trump’s ongoing tariff threats.
Key Economic Data in Focus This Week
Investors are bracing for a packed week of economic reports that could sway the market. On Monday, the Federal Reserve’s consumer inflation expectations report will be released, followed by the University of Michigan’s consumer sentiment index on Friday.
The most anticipated data arrives midweek, with the Consumer Price Index (CPI) set for release on Wednesday, followed by the Producer Price Index (PPI) on Thursday. These figures will provide key insights into whether inflation is cooling or heating up, influencing the Federal Reserve’s future decisions on interest rates.
Earnings Reports to Watch
While corporate earnings take a backseat this week, some notable companies are set to report their financial results. Oracle (ORCL) and BioNTech (BNTX) will release their earnings on Monday, while software giant Adobe (ADBE) reports on Wednesday.
Gold Remains Strong Amid Market Turmoil
Amid growing uncertainty, gold continued its strong performance, maintaining its appeal as a safe-haven asset. Spot gold held steady near $2,912 an ounce after rising nearly 2% last week.
Gold has surged throughout early 2025, reaching record highs as concerns over global trade policies, central bank buying, and potential Federal Reserve rate cuts drive investor demand.
Oil Prices Drop as China’s Economic Data Disappoints
Oil prices tumbled as weak economic data from China pointed to lower demand. Brent Crude hovered near $70 per barrel, while West Texas Intermediate (WTI) traded below $67.
China’s consumer inflation turned negative for the first time in over a year, fueling worries about global economic health. Meanwhile, President Trump reiterated that the U.S. economy was in a “transition period” but avoided discussing the risk of a recession.
Market pressure on crude prices has been further exacerbated by OPEC’s plans to boost production, ongoing Ukraine war negotiations, and a reduction in bullish bets on oil futures.
