From Yahoo Finance: 2025-03-31 19:05:00

President Donald Trump froze federal grants and loans, causing analysts to lower S&P 500 targets for the second quarter. Tariff-driven inflation and recession fears intensify, leading to market corrections. Consumer sentiment drops, CEO confidence spirals, and uncertainty looms. Trump’s “Liberation Day” brings heightened trade war risks and market volatility. Analysts predict potential bearishness and downside surprises in the coming months.

Banks warn of escalating tariff rates exceeding market expectations. Consumer sentiment hits a four-year low, but hard data remains steady. Bright spots include robust card spending and rising air traffic. A potential consumer spending pullback could trigger recessionary angst, impacting markets later in the year. Analysts watch March payroll data closely for market indicators.

Concerns rise over inflation and stagflation as the Federal Reserve faces tough decisions. Upside potential exists if market-based inflation expectations lead to downside surprises. Analysts stress the importance of certainty and predictability in tariff policies for market stability. Investors should brace for more volatility and uncertainty in the upcoming quarter.

Read more: Trump’s ‘reign of tariffs’ is nearly here. These are the 3 big risks facing markets.