Investors worried about slowing economic growth and consumer spending, leading to market sell-off

From Investing.com: 2025-03-03 00:35:00

Last week, the market’s top concern shifted to slowing economic growth, particularly consumer-led growth, causing a sell-off. The Fed may intervene if needed. The sudden drop in GDP forecast was attributed to record trade deficits and declining real spending due to tariff threats. Consumer sentiment weakened, with Walmart’s disappointing guidance contributing to stock declines. Bond markets shifted focus from inflation to growth concerns, predicting a possible rate cut by June. Market volatility is expected, with tariffs and geopolitical tensions causing headline risks.

Market indicators show a mix of bullish, neutral, and bearish phases, with value outperforming growth. Emerging markets weakened, while gold and soft commodities retreated. Risk gauges remain negative, with the modern family under pressure. Bonds rallied as economic concerns grew, suggesting a risky market environment. The market outlook is uncertain, with potential for continued volatility and downside risk.



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