Market Jitters: Tariffs and Recession Fears Loom Over Wall Street

Wall Street faced a cautious start as investors analyzed economic data amid concerns over President Trump's tariffs. Mixed retail sales and factory activity reports added to recession fears. Trump's firm stance on tariffs and the Fed's impending rate decision further heightened market uncertainty.

Investors on Wall Street braced themselves for a reserved opening session on Monday, as they grappled with a fresh batch of economic data shedding light on the impact of President Donald Trump's tariffs. A moderate bounce-back in retail sales for February followed a significant drop in January, yet a separate report indicated a worrying slump in factory activity in New York State.

Experts are finding it challenging to predict the year ahead, amid fears of a trade war-induced recession. In an interview with NBC, analyst Bessent warned about the absence of guarantees against a potential U.S. recession, echoing widespread investor anxiety. No exemptions have been made in Trump's steel and aluminum tariffs, poised for enforcement in early April.

Precursory market movements showed minor gains and losses among major Wall Street indices. Notably, the S&P 500 and Nasdaq experienced moderate gains after favorable inflation reports, yet continued concern remains as Trump's tariff policies may negatively affect growth in North America according to the OECD.

(With inputs from agencies.)