Kohl's is due to report a fall in fourth- quarter revenue as U.S. department store chains struggle with slumping demand for their apparel and accessories. Investors will look for comments on any strategy changes under the new CEO Ashley Buchanan, performance of core business and demand trends so far this year.
On the U.S. economic front, the January Job Openings and Labor Turnover Survey (JOLTS) report is likely to show that job openings rose to 7.63 million in January from 7.60 million in December. Additionally, the National Federation of Independent Business is expected to publish its Small Business Optimism Index as well.
CEOs of Delta Air Lines, United Airlines Holdings, American Airlines Group, Southwest Airlines and JetBlue Airways are expected to speak at JP Morgan's industrial conference amid growing concerns about consumer spending.
Brazil’s industrial output figures are set for release. Industrial output probably expanded 0.4% in January after a decline of 0.3% in December. On a yearly basis, production in January is expected to grow 2.2% after increasing 1.6% in December.
Stocks plunged as relentless tariff wrangling and mounting anxieties from a possible federal government shutdown gave rise to fears that the U.S. economy could be careening into recession. The tech-loaded Nasdaq suffered the most just days after the tech loaded index dipped more than 10% below its record closing high, confirming that it entered a correction when it touched that high on December 19. The broader technology sector fell 4.34% to 4076.84. Meanwhile, Tesla shares ended 15.43% lower. "Investors are continuing to assess this manufactured correction - and I say manufactured because it was in a sense brought on by the aggressive threats of global trade barriers and tariffs," said Sam Stovall, chief investment strategist of CFRA Research in New York. "Bull markets don't die of old age, they die of fright and what they're most afraid of is recession." The Dow Jones Industrial Average fell 2.08% to 41,911.71, the S&P 500 lost 2.70% to 5,614.58 and the Nasdaq Composite plunged 4.00% to 17,468.32.
Treasury yields fell after comments by U.S. President Donald Trump on Sunday raised concerns about an impending U.S. recession. In an interview, Trump declined to predict whether the U.S. could face a recession amid stock market concerns about his tariff actions on Mexico, Canada and China, saying that "there is a period of transition.” U.S. Treasury Secretary Scott Bessent said on Friday that the U.S. economy may slow as it transitions away from public spending towards more private spending, calling it a "detox period" needed to reach a more sustainable equilibrium. The benchmark 10-year notes rose 25/32 to yield 4.2245%. Two year notes gained 6/32, yielding 3.8998%. 30-year bonds were up 1-4/32 to yield 4.5480%.
The dollar weakened against the yen as investors worried about a probable U.S. economic slowdown and a persistent selloff on Wall Street that has been battered by continued policy uncertainty surrounding the Trump administration's trade policy. Traders are pricing in 75 basis points of cuts from the Fed this year, LSEG data showed, with a rate cut fully priced in for June. Investors will be eyeing U.S. inflation data due on Wednesday. The dollar index rose 0.13% to 103.98. Against the Japanese yen, the greenback fell 0.51% to 147.28 yen. The euro lost 0.02% to $1.0830.
Oil prices were down on fears that U.S. tariffs on Canada, Mexico and China would slow economies around the world and slash energy demand while OPEC+ ramps up its supply. Brent crude was down 1.63% at $69.21 a barrel. U.S. West Texas Intermediate crude lost 1.61% to $65.96 per barrel. Last week marked WTI's seventh consecutive weekly decline, the longest losing streak since November 2023, while Brent fell for a third consecutive week. "This market is on tenterhooks and there's a lot to be processing as we move forward," said John Kilduff, partner with Again Capital in New York. "There are recession talks for the U.S. and it's very concerning for the macro picture."
Gold prices dipped as profit-taking countered support from safe-haven demand fuelled by geopolitical uncertainty, while focus was also on the U.S. inflation print. "There is a slight pause in gold prices due to some mild profit-taking and a weaker stock market. However, we might see some safe-haven bids later," said Jim Wyckoff, senior analyst at Kitco Metals. "Uncertainty regarding trade wars and global economic recessions are all bullish for gold, record high levels are possible again. Weaker-than-expected data is going to be friendly for gold," Wyckoff said. Spot gold fell 0.79% to $2,887.75 an ounce. U.S. gold futures lost 0.73% to $2,892.80 an ounce.
