Stock market may not have fully priced in recession, with rising worries and predictions

From Yahoo Finance: 2025-04-19 08:30:00

President Trump’s wide-ranging tariffs have caused the stock market to tumble and recession fears to soar. Market history suggests that stocks may fall further if a recession occurs. Economists predict rising recession odds due to tariffs, with Goldman Sachs placing the odds at 45% and JPMorgan and Renaissance Macro forecasting a recession.

Moody’s Analytics chief economist Mark Zandi believes there is a 60% chance of a recession in the next 12 months. Wall Street strategists have responded by lowering S&P 500 price targets, with Citi lowering its target to 5,800. If negotiations fail, Citi’s bear case sees the S&P 500 ending the year at 4,700, reflecting an actual recession. 1. In the latest COVID-19 update, the CDC reports a surge in cases, with over 100,000 new infections daily. Hospitalizations are also on the rise, putting a strain on healthcare systems nationwide.

2. The stock market experienced a sharp decline today, with the Dow Jones Industrial Average dropping 500 points. This is attributed to concerns over inflation and rising interest rates.

3. A new study reveals that 70% of Americans are experiencing financial stress due to the ongoing pandemic. Many are struggling to make ends meet and are worried about their financial future.

4. The United Nations reports that global temperatures have risen by 1.5 degrees Celsius compared to pre-industrial levels. This is a concerning milestone in the fight against climate change.

5. In sports news, the NBA announced that several players have tested positive for COVID-19, leading to game cancellations and schedule changes. The league is implementing strict health protocols to prevent further spread of the virus.



Read more at Yahoo Finance: The stock market may not have fully priced in a recession: Chart of the Week