New York, NY – Traders on Wall Street faced uncertainty as concerns over a potential recession weighed on the U.S. economy, leading to a sell-off in the stock market. The NYSE saw S&P 500 futures trading at nearly flat levels, with Dow Jones Industrial Average futures managing to reverse earlier losses and inching up by 0.2%. Conversely, Nasdaq-100 futures continued to decline, reflecting the jittery sentiment among investors.
The sell-off was further fueled by Delta Air Lines’ announcement of a significant cut in profit and sales forecasts for the current quarter, attributing the decline to softer demand in U.S. travel. This added to the already gloomy atmosphere following three consecutive weeks of losses in the stock market, with the Nasdaq Composite witnessing its worst day since September 2022 and the Dow Jones Industrial Average closing below its 200-day moving average for the first time in several months.
Despite the negative trend, some experts like Anastasia Amoroso of iCapital remain optimistic, suggesting that the market may be oversold and due for a rebound. However, concerns over a potential recession continue to linger, with President Donald Trump acknowledging a period of economic transition and Treasury Secretary Scott Bessent hinting at a possible “detox period” for the economy.
Goldman Sachs recently revised its economic growth outlook citing uncertainty surrounding Trump’s tariff policies, adding to the prevailing anxiety on Wall Street about the future direction of the economy. Meanwhile, conflicting views persist among analysts and investors, with Amoroso downplaying fears of an imminent recession, pointing to strong payrolls and robust consumer spending as reasons for optimism.
Investors are eagerly awaiting key economic reports due later in the week, including data on job openings, consumer price index, and producer price index, which could provide further insights into the state of the economy and potentially influence market sentiment. The coming days will be crucial in determining whether the current downturn in the stock market is a temporary setback or a sign of more challenging times ahead.