S&P 500: US Indices Slip Pre-Market as Volatility Rises Ahead of Retail Sales

Is the Economy Slowing Down?

There are growing signs that economic growth is losing steam. Many companies at recent investor conferences have hinted at weakening business conditions, raising concerns about upcoming corporate earnings reports in April.

Adam Parker, CEO of Trivariate Research, warns that this could be more than just a temporary slowdown. “This is actually like a growth slowdown,” he said, suggesting that investors should take a more defensive approach rather than expecting a quick market rebound.

However, Treasury Secretary Scott Bessent downplayed the sell-off, calling it a natural part of market cycles. “Corrections are healthy,” he said, emphasizing that runaway market gains can lead to financial crises.

Will the Fed’s Decision Calm Markets?

The Federal Reserve is widely expected to hold interest rates steady this week, but investors will be watching Chair Jerome Powell’s remarks for any clues on future rate cuts. Powell has maintained that the Fed is in “no hurry” to lower rates, but any change in tone could sway the market.

Meanwhile, economic data will be in focus. Monday’s retail sales report will offer insights into consumer spending. Economists predict a 0.6% increase for February, but weaker-than-expected numbers could further fuel recession fears.

What’s Next for the Market?

Global growth concerns are also mounting. The OECD cut its economic forecasts, citing trade tensions and policy uncertainty. U.S. growth is expected to slow to 2.2% in 2025 and 1.6% in 2026, reinforcing worries about a prolonged economic slowdown.