The stock market faced turbulence last week, heavily influenced by ongoing developments in Washington, D.C. as negotiations on tariffs between the United States, Mexico, and Canada unfolded. Amidst this backdrop, the S&P 500 experienced a decline of 3.10%, marking its worst weekly performance since September. Investors, already reeling from losses earlier in March, saw futures slip further on Sunday evening.
Futures tied to the Dow Jones Industrial Average slipped by 135 points, or 0.3%, while S&P 500 futures dropped 0.5%. Meanwhile, Nasdaq 100 futures decreased by 0.6%. In the preceding week, the Dow fell by 2.37% and the Nasdaq Composite shed 3.45%.
The economic calendar this week is poised to be dominated by inflation data. The February Consumer Price Index (CPI) report is scheduled for release on Wednesday, with expectations that both total and core CPIs rose at a more moderate pace compared to the sharp increases observed in the prior month. This comes as producer prices likely rose at a faster rate than consumer prices for the second consecutive month, with the Producer Price Index (PPI) due out on Thursday.
"Inflation data will dominate the economic calendar this week. The total and core Consumer Price Indexes (CPI) likely rose at a more moderate pace in February after sharp increases in the prior month, resulting in annual increases holding roughly steady," – Comerica Bank chief economist Bill Adams.
In addition to inflation figures, key economic indicators are set for release throughout the week. The New York Federal Reserve's survey of consumer expectations is due on Monday, offering insights into consumer outlook amidst economic uncertainties. Later in the week, the University of Michigan will publish its consumer sentiment reading on Friday.
Investors remain cautious as they navigate these developments, seeking clues from upcoming reports to better understand the economic trajectory. The outcome of trade negotiations and inflation data will be critical in shaping market sentiment in the days ahead.