US futures, including the Nasdaq, S&P 500, Dow, and Russell 2000, have seen losses for the second consecutive day. This decline follows failed attempts to maintain critical market levels, indicating ongoing volatility.

The University of Michigan’s consumer sentiment index fell by 10% to 64.7, while home sales decreased by 4.9% in January. Economic uncertainties and anticipated tariffs on autos, semiconductors, and pharmaceuticals have raised concerns over increased costs and supply chain disruptions.

The E-mini Nasdaq struggled at the 22,313 resistance, resulting in a more than 2% drop. Similarly, the E-mini S&P 500 closed down 1.75% after failing to exceed the 6,171 zone.

The E-mini Dow broke down from a consolidation pattern, closing 1.77% lower after falling beneath the critical 44,786 mark. The E-mini Russell, down 2.97%, led the decline among major indices, reflecting heightened caution towards small-cap stocks.

This sell-off stems from technical breakdowns, economic weakness, and tariff concerns. The situation raises questions about whether current market conditions are indicative of a temporary setback or the beginning of a broader downturn.

Market sentiment took another hit this week, with futures sliding for a second consecutive session. Weak economic data and mounting concerns over tariffs have stirred unease, leading to another round of selling.

Consumer sentiment, as measured by the University of Michigan, recorded a sharp 10% drop, arriving at 64.7. That marks a clear reversal from recent months. Meanwhile, home sales in January declined by 4.9%, highlighting caution in the housing market. Investors now face added uncertainty as policymakers push tariffs on autos, semiconductors, and pharmaceuticals, raising concerns about higher costs and possible strain on supply chains.

Key indices struggled to maintain important levels. The E-mini Nasdaq attempted to push beyond 22,313 but failed, triggering a more than 2% drop. A similar situation unfolded in the E-mini S&P 500, which could not sustain momentum above 6,171 before sliding 1.75% by the close.

The E-mini Dow, after a period of consolidation, finally broke lower. With prices falling below 44,786, the index ended the session down 1.77%. But the most pronounced losses came from the E-mini Russell, dropping 2.97%—a sign that traders are becoming more cautious about small-cap stocks.

The sell-off is tied to a combination of technical breakdowns, economic weakness, and newly emerging tariff risks. When markets struggle at key resistance levels and quickly retreat, it often reinforces concerns that underlying sentiment is shifting. These patterns will have traders paying attention to upcoming price movements and whether sentiment continues to deteriorate or finds some stability.

We know that these types of declines tend to influence short-term market behaviour. If indices cannot reclaim prior levels in the coming sessions, it could suggest that sellers remain in control. However, if buyers return with enough strength to recover lost ground, it may indicate that the recent dip was more of a shakeout rather than the beginning of something larger. The coming weeks will provide more clarity on whether markets are merely adjusting or if deeper structural weaknesses are starting to emerge.