New York, NY – The New York Stock Exchange witnessed an uptick in S&P 500 futures early Friday following a recent slump that pushed the benchmark into a correction phase. Futures linked to the broad index saw an increase of 0.81%, while Nasdaq 100 futures experienced a 1.05% gain. Additionally, Dow Jones Industrial Average futures surged by 231 points, marking a 0.57% increase.
The S&P 500 saw a 1.4% decline on Thursday, leading to a 10.1% drop from its previous record high last month, officially placing it in correction territory. Alongside this, the Dow and Nasdaq Composite also experienced declines of 1.3% and around 2%, respectively, during the session. Notably, the Nasdaq has now fallen by more than 10% this year, moving further into correction territory.
In a similar vein, the Russell 2000, focusing on small-cap stocks, has plummeted by approximately 19% from its recent peak, inching closer to entering a bear market, defined by a decline of 20% or more. The ongoing market pullback has been attributed to the uncertainties surrounding President Donald Trump’s fluctuating tariff policies, which have contributed to heightened volatility in the market.
According to Adam Turnquist, chief technical strategist for LPL Financial, the rapid shift from record highs to correction territory within a short span highlights the impact of tariff uncertainties on investor sentiment and economic growth concerns. Analysts are closely monitoring consumer sentiment data set to be released on Friday, as well as preparing for the upcoming Federal Reserve policy meeting next week, where there is a 98% likelihood of interest rates remaining unchanged, as indicated by CME’s FedWatch tool.
Overall, the market’s recent downturn, spanning over three weeks, has alarmed investors, with all three major indexes experiencing declines of more than 4% this week. The Dow is facing the prospect of its second consecutive losing week, with its worst weekly decline since June 2022. Similarly, the S&P 500 and Nasdaq are on track for their fourth negative week in a row, underscoring the ongoing volatility and uncertainty in the market.