The major U.S. index futures for the Dow Jones, S&P and Nasdaq are currently pointing to a modestly higher open on Tuesday, with stocks likely to regain ground following the sell-off seen in the previous session.
Traders may look to pick up stocks at reduced levels following the steep drop seen on Monday, which extended a notable downward trend by the markets.
The Nasdaq and the S&P 500 ended Monday’s trading at six-month closing lows, while the narrower Dow slumped to its lowest closing level in four months.
Buying interest may remain somewhat subdued, however, as concerns about the economic impact of President Donald Trump’s policies continue to weigh on investors’ minds.
Traders may also be reluctant to make significant moves ahead of the release of the some key economic data over the coming days.
Reports on consumer and producer price inflation are likely to be in focus along with readings on consumer sentiment and inflation expectations.
U.S. stocks tumbled on Monday and the major averages all closed sharply lower, with the tech-laden Nasdaq recording a more pronounced loss. Uncertainty about President Donald Trump’s tariff moves, fears of a recession in the world’s largest economy, and a weak global growth outlook weighed on investor sentiment.
In a Fox News interview on Sunday, U.S. President Donald Trump declined to rule out the possibility of a recession following his tariff actions on Mexico, Canada and China.
“There is a period of transition, because what we’re doing is very big. We’re bringing wealth back to America,” Trump told the “Sunday Morning Futures” program.
With a slew of crucial economic data due later in the week, the mood in the market is extremely cautious.
Reports on consumer and producer price inflation, as well as readings on consumer sentiment and inflation expectations, are due this week.
The Dow closed down 890.01 points or 2.08 percent, at 41,911.71. The S&P 500 ended lower by 155.64 points or 2.7 percent, at 5,614.56, while the Nasdaq dropped 727.90 points or 4 percent to 17,468.32.
Tesla tanked nearly 16 percent. Meta Platforms, Nvidia, Alphabet, Oracle and Apple lost 4 to 5 percent, Microsoft declined 3.3 percent, Intel drifted down 3.2 percent, and Amazon ended lower by about 2.3 percent.
Morgan Stanley, Wells Fargo, US Bancop, Goldman Sachs, Citigroup, American Express, JP Morgan and Bank of America all closed sharply lower.
United Airline Holdings, Delta Airlines, Boeing, Nike, FedEx, Netflix, Moody’s and Airbnp ended weak as well.
Regeneron Pharmaceuticals, Exxon Mobil, Vertex Pharmaceuticals, ResMed, Constellation Brands, General Motors and PepsiCo were among the notable gainers in the session.