Dow Futures Bounce Back, More Inflation Data—and What Else Is Happening in the Stock Market Today
Stocks were beginning to bounce back Tuesday, after a Monday selloff linked
to inflation fears and recession risks rocked markets and pushed the S&P 500 index into a bear market.
Monday’s selling saw the Dow notch its third consecutive decline of 500 points or more for the first time on record,
while the S&P headed into bear-market territory—defined as slump of greater than 20% from recent highs.
Even the rally implied by stock-index futures in the day ahead would keep the S&P 500 in that zone.
Behind the erosion in investor sentiment is the risk of recession amid signs of persistent inflation, which is at a multidecade high.
Central banks including the Federal Reserve are expected to battle inflation
with more aggressive monetary policy, including multiple interest-rate increases.
The concern is that the Fed can’t engineer a “soft landing”—cooling down inflation without causing a recession.