Stock Market Outlook: Dow, S&P 500, and Nasdaq Futures Slide After Another Week of Sharp Losses

As investors gear up for another week of potential market turbulence, futures for the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite are all pointing downward. This comes after a difficult week for the stock market, which saw significant losses across all three major indexes. With ongoing concerns about inflation, interest rates, and geopolitical instability, the outlook remains uncertain as we head into the week ahead.

Market Slide Continues

Stock futures were falling late Sunday as investors brace for a busy week that includes the Federal Reserve's upcoming interest rate decision. As of 6:10 p.m. Eastern on Sunday, Dow futures were down 129 points, or 0.3%, S&P 500 futures were down 0.4%, and Nasdaq futures were off by nearly 0.5%. These declines suggest that markets are poised to continue the losses experienced last week.

In fact, the past week was a tough one for Wall Street. The Dow dropped 3.1%, while the S&P 500 fell 2.3%, and the Nasdaq tumbled 2.4%. The losses were sharp enough to make a notable impact on longer-term trends. The Dow posted its largest two-week point and percentage drop since September 2022, and it is down 2.5% for the year so far.

Similarly, the S&P 500 has now been in the red for four straight weeks, marking its largest four-week point decline since the week ending April 3, 2020, when the markets were reeling from the early days of the COVID-19 pandemic. The S&P 500 is down 4% for the year, while the Nasdaq has had a similar rough stretch, also falling for four consecutive weeks. The Nasdaq is down 8.1% year-to-date, showing just how tough 2025 has been for the tech-heavy index.

Geopolitical Tensions Heighten

While the Fed's policy decisions are top of mind for investors, global events are also contributing to market jitters. Over the weekend, President Donald Trump ordered pre-emptive airstrikes on Houthi militants in Yemen, heightening concerns about the potential for a wider conflict in the Middle East. The Houthi rebels have already vowed retaliation, which could further escalate tensions in the region.

Given the delicate balance in global markets, investors are closely watching any developments in Yemen and other hotspots. A broader geopolitical crisis could exacerbate the already fragile market sentiment and increase volatility.

Fed Decision in Focus

The week ahead will be dominated by the Federal Reserve’s interest rate decision on Wednesday. With inflationary pressures remaining a concern, many market participants are eager to hear from the Fed on its next steps. Most experts expect the Fed to keep its benchmark interest rate unchanged in its current range of 4.25% to 4.50%, with 99% of expectations pointing to a pause in rate hikes, according to the CME FedWatch tool.

The market will also be looking for additional insights from Fed Chair Jerome Powell, who will give his first public comments since the S&P 500 entered correction territory last week. Powell's remarks will likely provide further clues on the Fed's thinking and what investors can expect in the months ahead.

Additionally, the Federal Reserve will release its latest Summary of Economic Projections, which will provide a deeper look into the central bank’s outlook for inflation, economic growth, and interest rates.

Key Economic Data on the Horizon

Beyond the Fed’s decision, there are several important economic data points scheduled for release this week. On Monday, the Census Bureau will release its retail sales report for February, offering a snapshot of consumer spending trends. This will be followed by the Federal Reserve Bank of New York’s Empire State Manufacturing Survey for March.

Later in the week, the Federal Reserve Bank of Philadelphia will release its Manufacturing Business Outlook Survey for March on Thursday. These reports will give investors more insight into the health of the economy, especially within the manufacturing and consumer sectors.

Housing data will also be a key focus this week. On Monday, the National Association of Home Builders will release its Housing Market Index for March. This will be followed by the Commerce Department's housing starts and building permits data for February on Tuesday. Finally, the National Association of Realtors will release its existing-home sales report for February on Thursday. These reports will shed light on the strength of the housing market, an important component of the broader economy.

Looking Ahead

As investors digest all of this information, the path forward remains uncertain. With interest rates still high, inflation concerns lingering, and geopolitical risks on the rise, markets are facing significant challenges. The continued weakness in the major indices suggests that volatility may be here to stay, at least in the short term.

For now, the markets are in wait-and-see mode, hoping for clarity from the Federal Reserve and other economic indicators. As always, investors should remain vigilant and prepared for any sudden shifts in market sentiment.

• Interest Rates
• Dow Jones
• S&P 500
• Federal Reserve
• Stock Market