Investing.com– U.S. stocks stabilized Monday after last week’s losses, but investors continued to fret that the uncertainty over trade tariffs will weigh heavily on the world’s largest economy.
At 09:35 ET (13:35 GMT), the gained 100 points, or 0.2%, the index rose 11 points, or 0.2%, and edged 10 points higher, or 0.1%.
The NASDAQ sank deeper into correction territory last week, the S&P 500 also briefly fell into correction territory, while the Dow had its biggest one-week drop since 2023, losing 4.4%.
Concerns over the country’s economic health rose over the weekend after U.S. Treasury Secretary Scott Bessent, in an interview with NBC on Sunday, said there were “no guarantees” that the U.S. economy will avoid recession this year.
This came just a week after U.S. President Donald Trump declined to rule one out.
Retail sales rebound
U.S. retail sales rebounded in February, suggesting that the economy continued to grow in the first quarter, though at a moderate pace as tariffs on imports and mass firings of federal government workers weigh on sentiment.
rose 0.2% last month after a revised 1.2% decline in January, weaker than the 0.6% growth predicted.
Fed meeting in focus
Investors were also on guard for more economic cues from a Federal Reserve meeting this week, with the widely expected to keep rates unchanged.
Trump’s flip-flopping on trade tariffs against major trading partners, coupled with his continued threats of more tariffs, were a key point of uncertainty for markets in recent months.
The potential trade war between the U.S and Europe could jeopardize transatlantic business worth $9.5 trillion annually, the American Chamber of Commerce to the EU warned on Monday.
Uncertainty over the economy also contributed to growing fears of a recession, with the Fed likely to comment on this trend.
Recent data showed inflation remained resilient, while retail sentiment and the labor market cooled. The latter could give the Fed some impetus to soften its hawkish stance on rates.
Crude rises after strikes on Houthis
Oil prices rose Monday, buoyed by the potential for supply disruptions, after the U.S. launched a series of strikes against Yemen’s Houthis, vowing to continue attacking until the Iran-aligned group ends its assaults on shipping.
At 09:35 ET (13:35 GMT), Brent futures rose 0.9% to $71.22 a barrel, while U.S. West Texas Intermediate futures rose 1% to $67.56 a barrel.
The Houthis have a history of targeting commercial vessels in the Red Sea, a crucial corridor for global commerce, accounting for about 15% of the world’s shipping traffic.
The heightened conflict has raised concerns over potential disruptions to vital shipping routes in the Red Sea, leading to a notable impact on global oil markets.
Elsewhere, U.S. President Donald Trump said on Sunday that he will speak to Russian counterpart Vladimir Putin on Tuesday, as his administration works to broker peace between Russia and Ukraine.
Ukraine last week accepted a tentative ceasefire deal proposed by the U.S. at talks happening in Saudi Arabia, although it was unclear what the terms were.
(Ambar Warrick contributed to this article.)
