Dow, S&P 500, Nasdaq futures rise to eye a rebound from crushing sell-off

US stock futures climbed on Tuesday, pointing to the start of recovery from another brutal sell-off as investors’ worries about economic growth deepened in the lead-up to key inflation reports.

Futures on the S&P 500 (ES=F) were up 0.5%, while those on the Dow Jones Industrial Average (YM=F) rose around 0.4%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) moved up 0.6%.

On Monday, the three major indexes built on losses from the previous week, with the Nasdaq Composite (^IXIC) falling 4% to log its worst daily loss since 2022 as the “Magnificent Seven” megacaps faltered. But shares in Tesla (TSLA) rebounded in premarket after a show of support from President Donald Trump.

The mood on Wall Street has grown increasingly foreboding as investors gauge the chances of stagflation, amid deep cuts to firms’ economic forecasts and an upending in the markets’ thinking on economic growth.

That has put the focus on two key inflation reports later this week, February’s Consumer Price Index (CPI) print due Wednesday and the Producer Price Index (PPI) for the same month on Thursday. Later on Tuesday, the January JOLTS reading on job openings should shed light on odds of interest-rate cuts.

Meanwhile, Trump is pressing on with his fast-moving trade war, undeterred by concerns over the health of the US economy. A 25% tariff on all imports of steel and aluminum into the US from all countries is set to begin on Wednesday.