The Dow Jones futures fell on Sunday night, alongside the S&P 500 and Nasdaq futures, as markets reacted to economic uncertainty, trade policies, and upcoming events, including Nvidia’s GTC conference and the Federal Reserve meeting, Investor’s Business Daily reports.
Treasury Secretary Scott Bessent attempted to calm concerns, stating that market corrections are “healthy”, though he acknowledged there are “no guarantees” that the US will avoid a recession. Meanwhile, investor sentiment remains cautious amid new tariffs from former President Donald Trump, ongoing market volatility, and expectations of Federal Reserve policy signals.
Market Overview
- Dow Jones futures dropped 0.45%
- S&P 500 futures declined 0.5%
- Nasdaq 100 futures fell 0.55%
- Crude oil prices edged up slightly
The stock market suffered its fourth consecutive weekly decline, although Friday ended on a strong note. The Dow Jones Industrial Average fell 3.1% last week, marking its steepest decline in two years, while the S&P 500 and Nasdaq both experienced losses exceeding 2%.
Friday’s rebound sparked a rally attempt, particularly in the Nasdaq, but the market remains in a correction phase. Investors are urged to remain cautious yet prepared for potential shifts.
Key Market Drivers This Week
1. Nvidia’s GTC Conference & AI Market Outlook
Nvidia (NVDA) will hold its GTC event this week, a crucial moment for the company to showcase advancements in AI hardware and computing. CEO Jensen Huang is set to deliver a keynote speech on Tuesday, where analysts expect the unveiling of Nvidia’s next-generation GB300 AI chip.
This event could impact stocks beyond Nvidia, including:
- Broadcom (AVGO) and Taiwan Semiconductor (TSM), which manufacture AI chips
- Power and infrastructure stocks like Vistra (VST)
- Quantum computing stocks, including D-Wave Quantum (DWAV)
2. Federal Reserve Meeting & Interest Rate Signals
The Federal Reserve will meet on Tuesday and Wednesday, with no interest rate changes expected. However, investors will closely watch Fed Chair Jerome Powell for any hints about potential rate cuts in upcoming meetings.
3. Trump Tariffs and Global Trade Tensions
President Donald Trump’s tariffs continue to impact global markets. The European Union and other countries have retaliated against new U.S. trade policies, increasing economic uncertainty. Additional tariffs are expected in early April, potentially affecting business confidence and market stability.
4. Chinese Markets and Economic Data
China’s stock market has been performing well amid strong economic data, including:
- Retail sales up 4% in February
- Industrial production rising 5.9%
- Fixed asset investment growing 4.1%
Chinese tech giants such as Tencent (TCEHY), PDD Holdings (PDD), Qifu Technology (QFIN), XPeng (XPEV), and Xiaomi (XIACY) are set to release earnings this week.
The Chinese government has also announced new economic measures, including wage growth incentives and efforts to stabilize housing and stock markets.
What’s Next for Investors?
While last week ended with a stock market rally attempt, ongoing uncertainties make it a challenging environment for investors.
- The Nvidia GTC event could be a positive or negative catalyst for AI-related stocks.
- Trump tariffs and global trade disputes remain a source of volatility.
- The Federal Reserve’s stance on interest rates could impact market sentiment.
For now, investors are advised to:
- Monitor stocks showing relative strength
- Keep an eye on gold and Chinese stocks, which have shown resilience
- Stay cautious, with a focus on risk management
