In This Article:
By Pranav Kashyap and Johann M Cherian
(Reuters) - Wall Street's main stock indexes were set for a subdued open on Monday as investors assessed the latest batch of economic data to gauge the impact of President Donald Trump's tariffs on the economy.
A Commerce Department report showed retail sales rebounded moderately in February, after a revised 1.2% decline in January.
However, a separate report showed New York State factory activity plunged by the most in nearly two years, with new orders falling sharply and input prices climbing at the fastest rate in more than two years.
"It's just too early to tell. There are still too many unknowns and it's hard to make that rationale," Ladenburg Thalmann Asset Management's CEO Phil Blancato said on recession worries.
"We have an expensive stock market and we're probably looking at a difficult year to start."
In a Sunday interview with NBC, Bessent warned that there are "no guarantees" the United States will escape a recession.
His remarks heightened anxieties about the possibility of an economic downturn in the world's largest economy. 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.
Two favorable inflation reports had provided some relief and fueled Friday's "dip buying", propelling the S&P 500 and Nasdaq to their largest single-day percentage gains since November 6.
At 08:55 a.m. ET, Dow E-minis were down 64 points, or 0.15%, S&P 500 E-minis were up 2.5 points, or 0.04%, and Nasdaq 100 E-minis were up 44 points, or 0.22%.
Futures tracking the more domestically focused small-cap Russell 2000 index were flat.
Trump's tariff hikes will drag down growth in Canada, Mexico and the U.S. while driving up inflation, the OECD forecast on Monday, cutting its global economic outlook and warning that a broader trade war would sap growth further.
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 precariously close to correction territory, hovering about 2% away, and down roughly 8% from its all-time high.
The S&P 500 entered correction territory last week, following the Nasdaq's earlier move on March 6.