US Futures Bounce Back Over 0.3% as Markets Attempt Recovery from 2% Plunge

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Wall Street Futures Find Footing After Yesterday’s Losses

After a brutal trading session that saw major U.S. indices plunge more than 2%, futures markets showed signs of recovery early Tuesday. Dow e-mini futures registered a gain of 126 points, marking a 0.33% increase. Similarly, Nasdaq 100 and S&P 500 futures saw increases of nearly 0.4%.

This nascent rebound comes after a tumultuous trading session on Monday, characterized by substantial declines across the board. The Dow plummeted 971.82 points, a notable 2.48% decline, while the S&P 500 dropped 2.36%. The tech-heavy Nasdaq Composite and Nasdaq 100 fared no better, each shedding over 400 basis points as investors reacted to heightened economic uncertainty.

The sell-off was fueled in part by renewed tensions between President Donald Trump and Federal Reserve Chair Jerome Powell. Trump expressed criticism of Powell and his recent Federal Reserve policies on social media, labeling him a “major loser” while demanding immediate interest rate cuts. The president’s remarks raised concerns about potential political interference in central bank policy, unsettling markets already struggling with trade-related volatility.

Despite Monday’s sharp decline, futures markets edged higher on Tuesday, indicating that some investors might be seeing the sell-off as an overreaction. Several factors may be contributing to this tentative recovery, including bargain hunting as some seize the opportunity to buy stocks at lower valuations, expectations that Powell’s position will remain secure, and anticipation regarding the upcoming earnings reports of major market players like Tesla and Lockheed Martin. Tesla’s financial release, in particular, is being closely observed for indications of the company’s performance and its potential impact on the broader technology sector.

Despite the early rebound in futures, significant risks persist. Trump’s repeated attacks on the Fed have introduced an unpredictable element into monetary policy expectations. Moreover, the president’s escalating trade disputes, particularly with China, continue to weigh on investor confidence.