U.S. Futures Rise Following a Strong Sell-Off Driven by Recession Fears

U.S. stock futures edged higher on Tuesday, recovering some ground after recession fears triggered a steep sell-off on Wall Street.

As of 07:03 ET (11:03 GMT), S&P 500 futures were up 14 points (0.3%), Nasdaq 100 futures had gained 72 points (0.4%), and Dow Jones futures had climbed 109 points (0.3%).

The gains come after a brutal Monday session, during which the benchmark S&P 500 plunged 2.7 percent, extending last week’s losses. The tech-heavy Nasdaq 100 suffered its worst single-day drop since 2022, while the Dow Jones Industrial Average slid 2.1 percent.

Market sentiment remained fragile amid uncertainty over former President Donald Trump’s plan for mass federal employee layoffs and ongoing negotiations in Washington to prevent a government shutdown. House Republicans are set to vote on a Trump-backed spending bill later on Tuesday.

Meanwhile, U.S. Treasury yields declined, signaling investor caution over economic stability. The U.S. dollar index, which measures the greenback against a basket of major currencies, inched higher.

The CBOE Volatility Index (VIX), often referred to as Wall Street’s fear gauge, spiked to its highest close since August 2024, reflecting heightened market anxiety.

“Monday wasn’t a crash, but it was a tough session defined by risk-off sentiment and elevated volatility,” analysts at ING noted.

Delta Air Lines Slumps on Profit Warning

Delta Air Lines (NYSE: DAL) saw its shares tumble in premarket trading after the airline issued a profit warning, citing economic uncertainty in the U.S.

The company now expects first-quarter earnings per share to range between 0.30 and 0.50 dollars, sharply lower than its previous guidance of 0.70 to 1.00 dollars. Revenue growth is also projected to slow, with an expected year-over-year increase of 3 to 4 percent, down from earlier estimates of 7 to 9 percent.

“Consumers in discretionary sectors shy away from uncertainty,” CEO Ed Bastian told CNBC, adding that corporate travel spending has started to decline.

Oracle Dips Despite Strong Bookings

Oracle (ORCL) shares slipped slightly before the market open after reporting a modest miss in fiscal third-quarter earnings and offering weaker-than-expected guidance for the current quarter.

Despite the slight revenue shortfall, the software giant announced a surge in bookings that far exceeded Wall Street forecasts. Chairman Larry Ellison highlighted record levels of customer demand, while analysts noted that the figures did not yet factor in Oracle’s Stargate AI infrastructure joint venture.

Looking ahead, Oracle projects revenue growth of 15 percent for fiscal 2026 and 20 percent for fiscal 2027, both surpassing analyst expectations. CEO Safra Catz’s outlook reinforced confidence in continued demand for Oracle’s AI-driven cloud computing services.

Oil Prices Rebound as Dollar Weakens

Oil prices recovered from earlier losses, supported by a weaker U.S. dollar. However, concerns over an economic slowdown and trade tensions limited further gains.

Crude prices have been under pressure in recent weeks amid uncertainty over Trump’s tariff policies, particularly his shifting stance on trade measures against Canada and Mexico.

Trump’s latest move—imposing 20 percent tariffs on Chinese goods, including oil imports—has further strained sentiment, prompting retaliatory measures from Beijing.

As of 07:06 ET, Brent crude futures for May delivery had risen 1.1 percent to 70.03 dollars per barrel, while West Texas Intermediate (WTI) crude climbed 1.1 percent to 66.40 dollars per barrel.

Gold Climbs Ahead of U.S. Inflation Data

Gold prices advanced in European trading as the U.S. dollar hovered near a four-month low, driven by growing recession fears.

Investors are closely watching Wednesday’s U.S. Consumer Price Index (CPI) report, which could influence the Federal Reserve’s monetary policy decision next week. While the Fed is widely expected to keep interest rates steady, policymakers are assessing the impact of Trump’s recent tariff hikes.

By 07:07 ET, spot gold had risen 0.8 percent to 2,911.91 dollars per ounce, while gold futures for April delivery gained 0.6 percent to 2,916.89 dollars an ounce.