1. Futures Slump on Recession Concerns

U.S. stock futures fell sharply Monday, fueled by worries about an impending recession. Dow futures dropped 590 points (1.5%), S&P 500 futures declined 106 points (2%), and Nasdaq 100 futures plummeted 595 points (3.2%). This follows a weak nonfarm payrolls report, intensifying fears that the Federal Reserve’s prolonged high interest rates have pushed the economy towards a downturn. Goldman Sachs increased their 12-month recession odds to 25%, though they believe the Fed’s policy scope could mitigate the risk.

2. Nikkei Enters Bear Market Territory

Japan’s Nikkei 225 index plunged 13% earlier in the session, its worst day since the 1987 “Black Monday.” The index is now over 20% down from its July peak, erasing all gains for the year. Investors are wary of re-entering the Japanese market, likening it to catching “a falling knife,” especially with the yen strengthening and pressuring export-driven firms.

3. Bitcoin Drops to Five-Month Low

Bitcoin slumped to its lowest level since late February, dropping 12% to $53,008 by 04:15 ET. This decline erases much of the gains sparked by the launch of spot Bitcoin ETFs in March. Over $800 million has been liquidated from the crypto market in the last 24 hours, driven by recession fears and regulatory uncertainties.

4. Mars Eyes Kellanova Acquisition

Mars is considering acquiring Kellanova, a $27 billion move that could face antitrust scrutiny due to both firms’ control over major food brands. Kellanova shares have risen over 12% this year but still trade at a discount compared to peers like Hershey and Mondelez.

5. Crude Prices Slump on US Slowdown Fears

Crude prices hit eight-month lows amid mounting concerns of a U.S. economic slowdown. By 04:15 ET, WTI crude fell 1% to $72.81 a barrel, and Brent dropped 0.8% to $76.22. Weak economic data from the U.S. and China, along with disappointing manufacturing activity in Asia and Europe, have raised concerns about future oil demand.

High-Profile Earnings Continue

Despite the economic gloom, high-profile earnings reports are due this week, including Caterpillar, Uber, Super Micro Computer, Walt Disney, and Warner Bros Discovery.

Wall Street is set for a rough week as economic slowdown fears take centre stage. Investors will be closely watching economic data and high-profile earnings reports for further clues about the market’s direction.