Futures Dip Amid Economic Woes and Tariff Uncertainty

NEW YORK, March 13, 2025 — Stock futures fell sharply on Sunday night as investors grappled with ongoing economic uncertainty and President Donald Trump’s fluctuating tariff policies. Dow futures dropped 196 points, or 0.47%, while S&P 500 and Nasdaq 100 futures fell by 0.55% and 0.59%, respectively.

This decline follows a tumultuous week on Wall Street, where major indices continued to sink deeper into correction territory. The Dow Jones Industrial Average is down approximately 10.1% from its record close, while smaller-cap stocks are nearing bear market status, hovering about 20% off their highs.

Adam Parker, CEO of Trivariate Research, cautioned during CNBC’s ‘Closing Bell’ that the current market climate is more indicative of a prolonged growth slowdown rather than just a temporary scare. “If you look at the companies that were talking at big conferences in March, a lot of things are slowing,” Parker noted. “Until then, I think we have to play a little bit more defense than offense.”

Investor sentiment has been weighed down by President Trump’s erratic trade decisions, which have raised questions about the health of the economy. Last week, the federal government was expected to keep interest rates steady, but Chair Jerome Powell‘s comments regarding future rate cuts will be closely monitored to gauge any shifts in the economic outlook.

The upcoming U.S. retail sales report, set for release on Monday, is anticipated to provide insight into consumer behavior amid fears of an impending recession. Economists forecast a modest increase of 0.6% in retail sales for February, as data shows a slowing consumer spend.

This week is pivotal for investors, with the Federal Reserve meeting and economic indicators being closely watched. Nvidia‘s CEO Jensen Huang is also expected to discuss the future of AI technology at the GTC developer conference, which could influence market reactions.

The persistent declines come as investors remain particularly sensitive to developments in trade policies. Last week, Trump announced new tariffs on imports from the European Union and vowed to maintain existing tariffs despite potential backlash from both U.S. corporations and international markets.

Sector-wise, the S&P 500 saw declines across six of its eleven sectors, with notable pullbacks in consumer discretionary and information technology stocks, down by 21.7% and 15.4%, respectively. According to portfolio manager Thomas Martin, “These tariff wars are intensifying before they’re abating,” highlighting ongoing unpredictability that weighs negatively on stocks.

Retail investor sentiment remains bearish, with nearly 60% anticipating further declines over the next six months, marking a record high of pessimism according to the American Association of Individual Investors.

The volatility in the markets is expected to continue as both investors and analysts try to evaluate the long-term implications of Trump’s tariff policies and any forthcoming economic indicators.