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Futures down: Dow 0.45%, S&P 500 0.44%, Nasdaq 0.45%
March 17 (Reuters) - U.S. stock index futures took a hit
on Monday as Treasury Secretary Scott Bessent's comments added
to unease about an economic slowdown, while focus was on
tariff-related signals from the Federal Reserve's upcoming
meeting.
In a Sunday interview with NBC, Bessent warned that there
are "no guarantees" the United States will escape a recession.
His remarks heightened existing anxieties about the
possibility of an economic downturn in the world's largest
economy. President Donald Trump's tariff policies have
intensified fears of a trade war-induced recession.
Trump has made it clear there will be no exemptions for
steel and aluminum tariffs, with reciprocal and sectoral tariffs
poised to take effect on April 2.
The Fed's rate decision is slated for Wednesday, with market
expectations firmly anticipating that the U.S. central bank will
maintain current interest rates, according to data compiled by
LSEG.
All eyes will be on any indications from the Fed regarding
economic growth caution or rising inflation concerns.
"FOMC participants will have to rethink their projections
now that the first tariffs have taken effect and the White House
looks set to eventually impose larger tariffs," Goldman Sachs
analysts said.
At 05:34 a.m. ET, Dow E-minis were down 187 points,
or 0.45%, S&P 500 E-minis were down 24.75 points, or
0.44%, and Nasdaq 100 E-minis were down 87.75 points, or
0.45%.
Futures tracking the more domestically focused small-cap
Russell 2000 index lost 0.6%.
Last week, both the S&P 500 and the Nasdaq
marked their fourth consecutive weekly declines, with the Dow
also experiencing a weekly drop.
The blue-chip Dow is teetering on the brink of a
correction, hovering about 2% away and down roughly 8% from its
all-time high.
The S&P 500 entered correction territory last week,
following Nasdaq on March 6.
However, two encouraging inflation reports offered some
respite from last week's widespread Wall Street selloff.
That led to "dip buying" on Friday, propelling the S&P 500
and the Nasdaq to their most significant one-day percentage gain
since November 6.
Megacap stocks slipped in premarket trade on Monday, with
Microsoft ( MSFT ) and Amazon.com ( AMZN ) losing 0.7% and 0.3%,
respectively, while Tesla fell 1.8%.
Focus will be on February's retail sales report and the
monthly New York Fed manufacturing data, both scheduled for
08:30 a.m. ET.
Eyes will also be on developments related to the
Ukraine-Russia war, as Trump planned to speak to Russian
President Vladimir Putin on Tuesday.