Dow Futures Drop 350 Points Monday

At 07:00 ET (1100 GMT), the Dow Futures contract fell 350 points (1.1%), S&P 500 Futures traded 50 points (1.4%) lower, and Nasdaq 100 Futures fell 195 points (1.7%).

Major indexes on Wall Street posted strong gains on Tuesday and sought to recap some of the heavy losses over the past few weeks. The blue-chip Dow Jones Industrial Average rose more than 600 points (2.2%), while the broad-based S&P 500 rose 2.5%, its best day since early May, while the technology-heavy Nasdaq Composite gained 2.5%. However, such a positive day became unusual as the Federal Reserve aggressively tightened monetary policy to combat inflation, which has remained at levels not seen in 40 years, as investors fret about a possible recession. According to Citigroup, the probability of the world economy succumbing to recession is approaching 50% as central banks tighten their monetary policy. "Central banks may yet make the soft - or "softish" landings on which they base their forecasts (and ours), but that will require the rebound of supply shocks and demand to remain resilient," the bank's economists said in a note on Wednesday. Oil prices fell on Wednesday as traders worried about the economic slowdown in the United States, the world's largest consumer of crude oil. According to Reuters, President Joe Biden is expected to call for a temporary suspension of the federal gas tax of 18.4 percent per gallon on Wednesday. On Thursday, the president will meet with seven major oil companies.