US Stock Futures Slip as Treasury Secretary Downplays Market Selloff: Key Insights

By: Sayan

Published on: Mar 17, 2025

The US stock market faced another turbulent session as futures slipped, reflecting investor unease amid ongoing market volatility. Treasury Secretary Scott Bessent’s recent comments downplaying the selloff as a "healthy correction" have further fueled concerns that the Trump administration is unlikely to intervene to stabilize markets. This blog dives into the latest market trends, key events shaping global finance, and what investors should watch in the coming days.

Market Overview: US Equity Futures Decline

• US equity futures took a hit, with S&P 500 and Nasdaq 100 contracts falling by 0.3%. This decline signals a deepening of Wall Street’s four-week losing streak. In premarket trading, most of the "Magnificent Seven" tech stocks edged lower, although Nvidia Corp. saw gains ahead of its highly anticipated artificial intelligence conference.


• Meanwhile, European markets showed resilience, with the Stoxx 600 index rising by 0.4%. This performance extends Europe’s year-to-date outperformance compared to US stocks, highlighting the diverging trajectories of global markets.

Treasury Secretary Scott Bessent’s Comments Stir Concerns

• Treasury Secretary Scott Bessent’s remarks on NBC’s Meet the Press added to market jitters. Bessent dismissed the recent slump in US stocks as a "healthy correction," despite the S&P 500 losing approximately $5 trillion in value and entering correction territory. His comments dashed hopes that the Trump administration would step in to cushion the market impact of its policies.


• Benjamin Picton, a strategist at Rabobank, noted, “This statement caused some alarm for many Wall Street types who had been counting on Bessent to be the second Trump administration’s ‘voice of reason’ on economic policy.” Picton added that the remarks effectively rule out the possibility of policymakers providing liquidity support to stabilize financial markets.

Global Trade War Fears Boost Haven Assets

• Amid fears of a prolonged global trade war, investors are flocking to haven assets. Gold prices remain near record highs, hovering around $3,000 an ounce, while Treasury yields continue to edge lower. In Europe, Bund yields dropped by five basis points as concerns grew over Germany’s parliamentary vote on a landmark spending package.


• The US threat of "unrelenting" military strikes on Yemen’s Houthi militants has also heightened geopolitical tensions. The Houthi group has vowed to retaliate by targeting US vessels in the Red Sea, pushing Brent crude futures above $71 a barrel. European shipping stocks, including AP Moller-Maersk A/S and Hapag-Lloyd AG, saw gains as a result.

Central Bank Meetings in Focus

• This week, investors are closely watching policy meetings from the Federal Reserve, Bank of England, and Bank of Japan. While no interest rate changes are expected, market participants are particularly focused on the Federal Reserve for clues about potential economic support measures.


• Swaps indicate high odds of three Fed rate cuts this year. However, Fed Chair Jerome Powell faces the delicate task of reassuring investors about the economy’s solid footing while signaling readiness to provide policy support if needed. Recent below-forecast inflation readings and Monday’s US retail sales data are expected to reinforce concerns about a slowing economy.

Key Economic Events to Watch

• Monday: US retail sales, Empire manufacturing


• Tuesday: Canada CPI, US housing starts, import price index, industrial production


• Wednesday: Brazil rate decision, Eurozone CPI, Japan rate decision, US Fed rate decision


• Thursday: Australia unemployment, China loan prime rates, UK rate decision, US jobless claims


• Friday: Japan CPI, Malaysia CPI, New York Fed President John Williams speaks

Market Moves: Stocks, Currencies, and Commodities

Stocks

• S&P 500 futures fell 0.3%


• Nasdaq 100 futures fell 0.3%


• Dow Jones Industrial Average futures fell 0.3%


• Stoxx Europe 600 rose 0.5%


• MSCI World Index rose 0.2%

Currencies

• Bloomberg Dollar Spot Index fell 0.2%


• Euro rose 0.2% to $1.0905


• British pound rose 0.3% to $1.2969


• Japanese yen remained steady at 148.57 per dollar

Cryptocurrencies

• Bitcoin rose 0.2% to $83,367.38


• Ether rose 1% to $1,913.58

Bonds

• 10-year Treasury yield declined three basis points to 4.28%


• Germany’s 10-year yield declined six basis points to 2.82%


• Britain’s 10-year yield remained steady at 4.66%

Commodities

• West Texas Intermediate crude rose 1.2% to $67.97 a barrel


• Spot gold rose 0.5% to $2,998.04 an ounce

What’s Next for Investors?

• As markets navigate a complex landscape of geopolitical tensions, central bank policies, and economic data, investors should remain cautious. The Federal Reserve’s upcoming meeting will be critical in shaping market sentiment, while ongoing trade war fears and geopolitical risks could continue to drive demand for haven assets like gold and Treasuries.


• For those looking to stay ahead, subscribing to the Markets Daily newsletter can provide valuable insights into what’s moving stocks, bonds, currencies, and commodities.


• By staying informed and monitoring key developments, investors can better navigate the current market volatility and make strategic decisions. Keep an eye on central bank announcements, economic data releases, and geopolitical events to stay ahead in these uncertain times.