US pre-open: Futures higher following Monday's sell-off
By Iain Gilbert
Date: Tuesday 11 Mar 2025
(Sharecast News) - Wall Street futures were in the green ahead of the bell on Tuesday following yesterday's heavy sell-off.
As of 1225 GMT, Dow Jones futures were up 0.38%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.45% and 0.51% firmer, respectively.
The Dow closed 890.01 points lower on Monday amid fears that Donald Trump's new tariffs may plunge the US economy into a recession.
Traders continued to be focused on a potential recession prior to the open, with comments from Donald Trump over the weekend that the US economy was in a "period of transition" weighing heavily on sentiment.
The yield on the benchmark 10-year Treasury note was up roughly two basis points before the open at 4.237% after falling to 4.162% overnight as recessionary concerns sent investors off chasing safe havens.
Trade Nation's David Morrison said: "Bond prices soared, and yields fell sharply, as investors sought out safe haven plays. The yield on the key 10-year Treasury Note fell below 4.20%, down from 4.80% less than two months ago. And the market is now pricing in the probability of three or more 25 basis point rate cuts in 2025, up from just one at the start of the year. The reason for all this? Recession fears. Last week, the Atlanta Fed 'GDP Now' was forecasting that first quarter growth would come in at -2.4%, down from +2.3% estimated in mid-February. There are many assumptions that go into this forecast, and many will prove to be overstated. But there's no doubt about the direction of travel with tariffs, as currently planned, expected to weigh on economic growth.
"In an interview on Sunday, President Trump refused to speculate on the likelihood of a recession this year. But he said he expected "a period of transition" for the economy. This echoed comments from Treasury Secretary Scott Bessent on Friday who suggested there may be a "detox period" for the economy as the administration tackled government spending."
On the macro front, the National Federation of independent Business' small business index revealed that small business sentiment slipped to 100.7 in February, down 2.1 points month-on-month, as owners moved to hike prices amid greater uncertainty surrounding future conditions. 37% of respondents now expect the economy to improve, down 10 points from January, while just 12% said now was a good time to expand, the biggest monthly drop since April 2020, and 32% raised prices, up 10% month-on-month for the largest increase since April 2021 and the third-highest reading ever.
Still to come, January's JOLTS job opening numbers will be published at 1400 GMT.
In the corporate space, Delta Air Lines slashed its full-year guidance on the back of softened US demand, adding to worries about the state of the world's largest economy.
Reporting by Iain Gilbert at Sharecast.com
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