President Trump's tariffs have caused concern on Wall Street, with recession probabilities rising
From Nasdaq: 2025-03-28 03:35:00
- The S&P 500 has dropped 7% due to new tariffs imposed by the Trump administration, causing concern on Wall Street. J.P. Morgan raised recession probability to 40%, citing risks from U.S. trade policy changes.
- Tariffs are impacting the U.S. economy negatively, with forecasts becoming gloomier since February. Consumer spending fell in January, and sentiment has worsened due to trade policy uncertainty.
- The Federal Reserve Bank of Atlanta predicts a 1.8% GDP decline in Q1 2025, indicating a potential economic contraction. The S&P 500 historically falls 31% during recessions, raising concerns about future performance.
- Despite economic uncertainty, exiting the stock market may not be wise. Tariffs could be temporary, and history shows the market rebounds before the economy officially exits a recession. Patience is key for investors.
- Consider investing in the top 10 stocks recommended by The Motley Fool Stock Advisor team for potential high returns. Stock Advisor has outperformed the S&P 500 since 2002, offering valuable investment guidance.
Read more at Nasdaq: Will the Stock Market Crash if President Trump’s Tariffs Cause a Recession? History Gives a Clear Answer.