Stock Market Today: Turbulence Ahead as Recession Fears Loom

The stock market is bracing for a tumultuous start to the week on Monday, March 10, 2025, as investors grapple with mounting concerns over the U.S. economy and the impact of President Trump’s protectionist policies. Wall Street futures point to a lower open, with major indexes poised to extend their recent losses amid a backdrop of economic uncertainty and geopolitical tensions.

Major Indexes Under Pressure

As of early Monday morning, futures for the S&P 500 have declined 1%, while Nasdaq 100 futures are down 1.2%, indicating a challenging day ahead for U.S. equities. This downward trend follows a difficult previous week, where the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite each posted their biggest weekly losses of the year.

The Dow shed 2.4% last week, while the S&P 500 and Nasdaq tumbled 3.1% and 3.5%, respectively. Year-to-date performance paints a similarly gloomy picture, with the Dow barely clinging to gains at 0.1%, the S&P 500 down 2.4%, and the Nasdaq showing a significant 6.4% decline.

Economic Concerns and Policy Impact

President Donald Trump’s recent comments about the U.S. economy facing “a period of transition” have added to investor unease. Treasury Secretary Scott Bessent has warned of potential disruptions to growth and ruled out policy shifts to prop up the stock market, effectively removing the so-called “Trump Put” that investors have relied on in recent years.

The implementation of tariffs and sweeping government job cuts are starting to exert “fair share of pressures on the equity markets,” according to Sanford C. Bernstein strategist Rupal Agarwal. These policy decisions have contributed to a 20 basis point drop in 10-year Treasury yields over the past month, signaling growing concerns about potential economic stagnation.

Corporate Earnings and Market Outlook

Analysts are increasingly cautious about the impact of tariffs and fiscal spending cuts on corporate earnings. Morgan Stanley strategist Michael Wilson predicts the S&P 500 could slide 5% in the first half of the year, though he anticipates a recovery by year-end. JPMorgan Chase & Co. analysts have also adopted a more cautious stance on risk assets.

Despite the overall bearish sentiment, some market watchers see potential for a rebound. A top Wall Street strategist anticipates a 10%-15% jump in the stock market in the coming months, offering a glimmer of hope for investors.

Sector and Stock Spotlight

Technology stocks, particularly those in the AI and cryptocurrency spaces, are facing significant pressure. Tesla Inc. (TSLA) shares fell about 3% in premarket trading, threatening to erase their post-election gains. AI bellwether Nvidia Corp. (NVDA) is also experiencing downward pressure, along with other Big Tech names.

In the cryptocurrency market, Bitcoin has extended its losses for a fifth consecutive session, negatively impacting crypto-exposed stocks like Coinbase Inc. (COIN).

On a positive note, food delivery firm DoorDash Inc. (DASH) saw its shares jump after being included in the S&P 500 benchmark.

Upcoming Market Events

Investors should keep an eye on several key economic events this week that could influence market sentiment:

1. U.S. job openings report on Tuesday
2. U.S. Consumer Price Index (CPI) data on Wednesday
3. U.S. Producer Price Index (PPI) and initial jobless claims on Thursday
4. University of Michigan consumer sentiment report on Friday

These economic indicators will provide crucial insights into inflation trends, labor market conditions, and overall consumer confidence, potentially shaping the market’s direction in the coming days and weeks.

As the stock market navigates through this period of uncertainty, investors are advised to stay informed about ongoing economic developments, policy decisions, and corporate earnings reports. The interplay between these factors will likely determine the market’s trajectory in the short to medium term.