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Futures off: Dow 0.70%, S&P 500 0.84%, Nasdaq 0.98%
March 10 (Reuters) - U.S. stock index futures fell on
Monday as worries persisted that the Trump administration's
tariff policies could affect the world's largest economy, while
EV maker Tesla declined following a bearish brokerage forecast.
At 05:43 a.m. ET, Dow E-minis were down 299 points,
or 0.7%, S&P 500 E-minis were down 48.75 points, or
0.84%, and Nasdaq 100 E-minis were down 198.5 points, or
0.98%.
Megacap growth stock Nvidia ( NVDA ) lost 2% in premarket
trading, while Meta and Amazon.com ( AMZN ) dropped
more than 1.3% each.
Tesla fell 2.6% after brokerage UBS lowered its
forecast for the automaker's first-quarter deliveries and cut
its price target on the stock.
Futures tracking the more domestically focused smallcaps
Russell 2000 index declined 0.9%, while investors flocked
to safe-haven Treasury bonds.
In an interview on Sunday, President Donald Trump declined
to predict whether the U.S. could face a recession, at a time
when investors are concerned that his fluctuating trade policies
on Mexico, Canada and China could dampen consumer demand and
corporate investment.
China's retaliatory tariffs on some U.S. imports will take
effect on Monday and U.S. tariffs on some base metals are
expected to take effect later in the week.
Investors will also monitor U.S.-Canada relations. Former
central banker Mark Carney won the race to become leader of
Canada's ruling Liberal Party and will succeed Justin Trudeau as
prime minister, according to official results.
A Reuters poll found 91% of economists view the odds of a
downturn to have increased under Trump's rapidly shifting trade
policies.
Amid this uncertainty, the benchmark S&P 500 logged
its biggest weekly drop since September on Friday and the
tech-heavy Nasdaq fell more than 10% from its December
record high on Thursday. Since last week, the CBOE Volatility
index has been at levels not seen since December.
Data on inflation, job openings and consumer confidence are
due later in the week. The numbers could offer insights into the
health of the economy and the U.S. Federal Reserve's monetary
policy path.
On Friday, investors took some comfort from Fed Chair Jerome
Powell's comments that the economy was on a strong footing, but
he also underscored the need for caution on lowering borrowing
costs.
The Federal Open Market Committee will convene next week and
traders expect policy rates to be left unchanged for the first
half of this year, according to data compiled by LSEG.
U.S.-listed Chinese stocks such as Alibaba fell
2.4%, Bilibili lost 4.4% and Xpeng declined
2.7% after data from China heightened concerns about a recovery
in the world's second-largest economy.
Crypto stocks such as MicroStrategy ( MSTR ) slid 5.3%,
Coinbase dropped 5.5% and Riot declined 4.3%,
tracking a 4% drop in bitcoin.
Airbnb ( ABNB ) rose 1.8% after Jefferies upgraded the
vacation home rental company's shares to "buy" from "hold".