Dow futures inch higher after plummet driven by recession fears

U.S. stock futures signaled a small respite from the prior day’s carnage that had the Dow Jones Industrial Average losing nearly 900 points on worries that the economy could be heading toward a recession.

Futures steadied after Bloomberg News reported that President Trump would meet with business leaders on Tuesday, with investors on high alert for indications from the White House on possible trade policy shifts.

Dow futures were lately up 41 points, or 0.1%, at 41,988.00. S&P 500 futures added 6.25 points, or 0.1%, to 5,627.00 and Nasdaq futures rose 33.75 points, or nearly 0.2%, to 19,485.50.

“The market has been down for three weeks in a row, largely driven by uncertainty about where trade policy lands, full stop. We’ve been inundated with tariff announcements that, unlike the 2018 playbook, are actually being applied universally versus the surgical approach we saw with term 1.0,” Art Hogan, chief market strategist at B Riley Wealth, told CBS MoneyWatch. “Unless and until we know where the goal posts actually are on trade and tariffs, this uncertainty will continue to weigh on markets.” 

The president’s trade war with China has heated up, with Beijing implementing retaliatory tariffs on a range of American farm products. And Ontario, Canada’s most populous province, added a 25% surcharge to all electricity exports sent to the U.S. as part of that nation’s response to the White House’s tariffs on Canadian products. 

Stocks plunged on Monday, continuing three consecutive weeks of losses, with the technology-laden Nasdaq Composite marking its worst day since September 2022. The Dow shed 890 points, closing beneath its 200-moving average for the first time since late 2023.

The losses came a day after Mr. Trump declined to say whether he expects a recession this year, telling Fox News that “I hate to predict things like that. There is a period of transition, because what we’re doing is very big.” 

Guidance from Delta Air Lines added to concerns about the economy, with the carrier cutting its earnings outlook amid weaker U.S. demand.