US stocks were mixed on Monday as downbeat data and comments from Treasury Secretary Scott Bessent added to worries about the economy ahead of this week's Federal Reserve policy meeting.
The S&P 500 ( ^GSPC ) was just above the flat line, while the Dow Jones Industrial Average ( ^DJI ) gained 0.4%. The tech-heavy Nasdaq Composite ( ^IXIC ) fell about 0.5%.
The gauges attempted to climb after a sell-off that saw the S&P 500 ( ^GSPC ) enter correction territory and the Dow book its worst weekly performance since March 2023. Markets have been buffeted by economic slowdown fears and uncertainty over Trump's unpredictable tariff policy .
Bessent inflamed those worries on Sunday when he told NBC that he's not worried about the recent slump in stocks, saying "corrections are healthy." He added that there are "no guarantees" the US will avoid recession.
Stocks were trading higher on Monday as bets of rate cuts this year rose after a fresh print showed retail sales rose less than expected in February, while January's reading was revised lower.
Monthly retail sales were up 0.2%, versus estimates of a 0.6% rise, while the previous month's 0.9% drop was revised to a fall of 1.2%.
Meanwhile, the New York Fed's reading on manufacturing activity in New York state showed a sharp pullback in March, with the headline business conditions index falling to -20 from a reading of 5.7 in February.
Wall Street is also bracing for the Federal Reserve's two-day meeting starting Tuesday, where it is widely expected to stand pat on interest rates. Investors will look for any sign that Trump's policies are changing the central bank’s views of the future of the economy.
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