[New York Pre-Market Check] Recession Concerns Continue to Drive Decline... Possibility of Exaggerated Recession Fears

# Key Issues Before Opening Bell on Wall Street ### Recession Concerns Lead to Market Decline U.S. stock futures are showing gains in early trading on Tuesday as the markets attempt a rebound following a significant drop driven by recession fears the previous day. On Monday, Wall Street experienced substantial losses. The S&P 500 index extended its decline for a third consecutive week, and the Nasdaq Composite index recorded its worst single-day loss since September 2022. The Dow Jones Industrial Average plunged around 900 points, dipping below the 200-day moving average for the first time since November 1, 2023. The heightened likelihood of a recession played a major role in this downturn. President Donald Trump, in a Fox News interview on Sunday, described the economy as being in a "period of transition." ### Investor Sentiment Deteriorates Anastasia Amoroso, Chief Investment Strategist at iCapital, commented, "The market appears to be in a phase of capitulation," adding, "We have been waiting for the market to reach an oversold level, and it is likely to happen today or within this week." Investor sentiment also took a hit from Delta Air Lines’ downward revision of its earnings guidance. The company cited weak domestic demand as the reason for lowering its forecast, leading to a more than 8% drop in its stock during pre-market trading. ### Potential Overstatement of Recession Fears Some experts argue that recession concerns are exaggerated. Amoroso questioned, "Where is the rationale for an imminent recession coming from? What indicators actually point to a recession?" She pointed out that "employment reports still show robust trends, and consumer spending is maintaining a growth rate of 3-4%," emphasizing, "At this moment, there is no reason to fear a recession." Investors are keenly watching key economic data due out this week. The Consumer Price Index (CPI) for February is scheduled for release on Wednesday, followed by the Producer Price Index (PPI) for February on Thursday. ### Stock Futures Rise According to CNBC data, Dow Jones futures are up 0.36%, Nasdaq futures are up 0.58%, and S&P 500 futures are up 0.45%. From The Wall Street Journal, the U.S. Dollar Index is down 0.31% to 103.52, the yield on the 10-year U.S. Treasury note has climbed 2.0 basis points to 4.235%, and WTI crude futures have risen 1.29% to $66.88 per barrel.