US Stocks Likely To Open Lower As Futures Decline: 'Stay Calm And Stick With Your Long-Term Plan,' Says Expert Amid Correction Woes
U.S. stock futures fell again on Monday after Friday’s rally, as benchmark indices hovered around the correction zone. Futures of all four benchmark indices declined in premarket trading.
Investors will focus on the Federal Open Market Committee’s decision on interest rates slated to be released on Wednesday this week. The meeting will begin on Tuesday and Chairman Jerome Powell will address a press conference on Wednesday afternoon.
February’s retail sales data will be released today before the market opens. President Donald Trump‘s tariff negotiations continue as traders wait for “reciprocal tariffs” which go into effect on April 2nd.
Meanwhile, Treasury Secretary Scott Bessent said Sunday that the Trump administration is working to prevent a financial crisis caused by years of excessive government spending.
"I can guarantee we would have had a crisis if spending had continued at unsustainable levels," Bessent said on NBC's Meet the Press. "We are resetting and putting things on a sustainable path.”
The 10-year Treasury yield stood at 4.29%, while the two-year yield was at 4.01%. According to the CME Group's FedWatch tool, there is a 99% chance that the Federal Reserve will keep interest rates unchanged for the March meeting.
Futures
Change (+/-)
Nasdaq 100
-0.48%
S&P 500
-0.49%
Dow Jones
-0.49%
Russell 2000
-0.63%
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, dropped in premarket on Monday. The SPY was down 0.39% to $560.64, and the QQQ also declined 0.41% to $477.70, according to Benzinga Pro data.
Cues From The Last Session
On Friday, Technology, energy, and financials led a Friday surge in U.S. stocks, with the S&P 500 rising over 2%.
Big tech shares, particularly Nvidia Corp. (NASDAQ:NVDA) and Tesla Inc. (NASDAQ:TSLA), rebounded strongly, though overall stocks, including the Dow and S&P 500, recorded weekly losses.
Conversely, consumer sentiment, as measured by the University of Michigan, fell to its lowest point since November 2022.
As of Friday’s close, the S&P 500 index was 8.27% down from its previous high, which followed a bounce from Thursday’s 10.18% drawdown. Similarly, the Nasdaq 100 was 11.33% lower and Dow Jones was down 7.95% from its 52-week high as of Friday.
Index
Performance (+/-)
Value
Nasdaq Composite
2.61%
17,754.09
S&P 500
2.13%
5,638.94
Dow Jones
1.65%
41,488.19
Russell 2000
2.53%
2,044.10
Insights From Analysts
The CEO of Creative Planning, Peter Mallouk in an X post highlighted that over the last 75 years, the intra-year market drop has been 14% on average.
“Downside volatility is the price investors pay ...
