Jamie Spencer
US stocks showed mixed performance on Monday as weak economic data and comments from Treasury Secretary Scott Bessent heightened concerns about a potential recession ahead of the Federal Reserve’s policy meeting this week.
The S&P 500 (^GSPC) hovered just above the flat line, while the Dow Jones Industrial Average (^DJI) gained 0.4%. Meanwhile, the Nasdaq Composite (^IXIC) fell about 0.5%, dragged down by technology stocks.
Stocks Attempt Recovery After Market Sell-Off
Markets have been rattled by fears of an economic slowdown and uncertainty surrounding President Donald Trump’s tariff policies. The S&P 500 recently entered correction territory, while the Dow had its worst week since March 2023.
On Sunday, Treasury Secretary Scott Bessent fueled concerns by downplaying the stock slump in an interview with NBC, stating that “corrections are healthy” and warning that there are “no guarantees” the US will avoid a recession.
Weak Retail Sales and Manufacturing Data
Economic data released Monday reinforced worries about slowing growth:
- Retail sales: Increased by just 0.2% in February, missing expectations of a 0.6% rise.
- January retail sales: Revised downward from a 0.9% decline to a steeper drop of 1.2%.
- New York Fed’s Manufacturing Index: Plunged to -20 in March, down from 5.7 in February.
The weaker-than-expected data led to increased bets on interest rate cuts later this year, providing some support for stocks.
Fed Meeting in Focus
Wall Street is now looking ahead to the Federal Reserve’s two-day meeting, which begins on Tuesday. The Fed is widely expected to hold interest rates steady, but investors will be closely watching for any signals about how Trump’s trade policies and the economic slowdown are influencing the central bank’s outlook.
