Stock Market Today: Indexes Recover After Monday’s Plunge, Recession Fears Linger
The stock market is showing signs of recovery on Tuesday, March 11, 2025, following a significant sell-off on Monday that saw major indexes experience their worst performance of the year. Investors are cautiously optimistic as they navigate concerns about potential economic slowdown and the impact of ongoing trade policies.
Market Indexes: A Tentative Rebound
As of early trading on Tuesday, major U.S. stock indexes are pointing towards a modest recovery:
– S&P 500 futures are up 0.41%
– Dow Jones Industrial Average futures have risen 0.32%
– Nasdaq 100 futures are showing the strongest gains, up 0.54%
This slight uptick comes after a tumultuous Monday session where the S&P 500 fell 2.7%, marking its largest single-day drop in 2025. The tech-heavy Nasdaq was hit even harder, plummeting 4%, which represents its most significant daily percentage decline since September 2022.
Upcoming Market Events and Economic Indicators
Investors are closely watching several key events that could impact market sentiment:
1. Job Openings and Labor Turnover Survey (JOLTS): The Labor Department is set to release this report later today, providing insights into the current state of the job market.
2. Consumer Price Index (CPI): A crucial inflation report is expected later this week. February’s CPI is anticipated to show a 0.3% increase, according to a Reuters poll. This data will be pivotal in shaping expectations for the Federal Reserve’s monetary policy decisions.
3. Federal Reserve Meeting: The central bank is scheduled to meet next week. Current interest rate futures suggest that the Fed will likely keep borrowing costs unchanged, though expectations for potential rate cuts later in the year are growing.
4. Government Funding Bill: Capitol Hill will be voting on a funding bill to prevent a partial federal government shutdown, adding another layer of uncertainty to the market.
Major Stock News and Corporate Developments
Several notable companies are making headlines, influencing market movements:
– Delta Air Lines (DAL): The carrier’s stock tumbled about 11% in after-hours trading on Monday after slashing its first-quarter profit and sales forecast due to weaker demand for U.S. travel.
– Tesla (TSLA): After plummeting 15.4% on Monday, Tesla’s stock is showing signs of recovery, with futures up 4.7% before the bell.
– Nvidia (NVDA): The tech giant’s stock is up 1.6% in pre-market trading, rebounding from Monday’s sharp decline.
– Oracle (ORCL): Shares dropped 1.8% after the cloud company missed quarterly revenue estimates.
– Southwest Airlines (LUV): The airline announced it will start charging for checked bags, a significant policy change that could impact consumer behavior and company revenues.
Market Sentiment and Economic Outlook
Investor sentiment remains cautious as concerns about a potential economic slowdown persist. President Donald Trump’s recent comments about a “period of transition” and his refusal to rule out a recession have added to market uncertainty.
Goldman Sachs has downgraded its economic growth forecast for 2025 from 2.4% to 1.7%, citing stronger headwinds resulting from the administration’s trade policies.
Looking Ahead: What’s Next for the Market?
As the market digests recent developments and awaits crucial economic data, volatility is expected to remain elevated. The CBOE market volatility index closed at its highest level since August, reflecting ongoing investor unease.
Analysts are closely monitoring the impact of trade policies, inflation trends, and corporate earnings to gauge the market’s direction in the coming weeks. With the S&P 500 now 8.6% below its recent record high, investors are reassessing valuations and positioning for potential further volatility.
As always, diversification and a long-term investment perspective remain crucial strategies for navigating these uncertain market conditions.
