A trader reacts while working on the floor of the New York Stock Exchange on Feb. 25, 2025.
- U.S. stocks endured another tough week, as the S&P 500 briefly dipped into correction territory and the Dow had its worst week since 2023.
- The OECD reduced its outlook for U.S. and global economic growth, while Treasury Secretary Scott Bessent downplayed the market declines.
- Buy now, pay later company Klarna filed to go public and inked a key partnership with Walmart.
Here are the most important news items that investors need to start their trading day:
1. Dow in the dumps
U.S. stock futures fell Monday after another rough week for equities. The Nasdaq Composite slid deeper into correction territory, or more than 10% lower than recent highs, and the S&P 500 briefly did, as well. Meanwhile, the Dow Jones Industrial Average slid 4.4% for its worst week since 2023. As investors try to digest President Donald Trump's rapidly changing tariff policy and some weaker-than-expected economic data, retail sales data due Monday and the Federal Reserve's interest rate decision Wednesday will offer fresh clues about the state of the economy. Follow live market updates.
2. Growing pains
U.S. and global economic growth will be lower than previously projected as Trump's trade war escalates, the Organisation for Economic Co-operation and Development said Monday. The OECD just its U.S. GDP growth estimates to 2.2% this year and 1.6% next year, down from previous estimates of 2.4% and 2.1%, respectively. As concerns grow about the health of the economy and the decline in stock prices, Treasury Secretary Scott Bessent said there are "no guarantees" the U.S. will not fall into a recession. Still, he said market corrections are "healthy" and "normal."
3. No more Mr. Nice Neighbor
Trump's tariffs on some Canadian goods and musings about making the country the 51st U.S. state have sparked a wave of nationalism north of the U.S. border. "It really feels for most Canadians like we've been backstabbed, that the person that we trusted the most is now sort of turning on us and attacking us for no apparent reason," said Joel Bilt, an economics professor focused on international trade at the University of Waterloo in Ontario. More Canadians are buying goods made in their country, while some airlines have started to reduce routes to U.S. destinations from Canada as demand for flights falls.
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4. Fintech flurry
It's been a busy few days for Klarna. The buy now, pay later company filed to go public in the U.S. on Friday, continuing its turnaround after a big drop in valuation in recent years. The Sweden-based company will also take over a key partnership with Walmart from rival Affirm, CNBC has learned. Klarna will offer loans to Walmart customers in stores and online through the retailer's majority-owned fintech startup OnePay.
5. Holding the bag
By abandoning its beloved free checked bag policy, Southwest Airlines has upset many loyal customers. "It was the only reason I flew Southwest," said MaKensey Kaye Alford, a 21-year-old singer and actress who lives near Birmingham, Alabama. Errol Joseph, a 36-year-old sales consultant who lives in New York and Dallas, said there's now "pretty much no reason to be loyal" to Southwest. It's the latest free perk a U.S. business as taken away, amid investor pressure to increase profits.
– CNBC's Sean Conlon, Sarah Min, Sophie Kiderlin, Yun Li, Alex Harring and Leslie Josephs contributed to this report.
