From Yahoo Finance: 2025-04-28 08:33:00

Stocks are rallying due to tariff relief, but BCA Research chief strategist Peter Berezin warns of potential recession risk. Berezin predicts a 75% chance of a US recession in 2025 with the S&P 500 finishing at 4,450. Current US tariff rates are at historic highs, impacting company investments and consumer spending. Procter & Gamble CEO notes reduced laundry loads amid economic concerns, leading to the company cutting sales and profit outlooks. Economic data indicates softening before trade war began, with GDP contraction in the first quarter and weakening consumer sentiment. Despite recent market rallies, Berezin believes US stocks are not pricing in economic deterioration, warning of under-performance in the future. The S&P 500’s PE multiple remains below past recession levels, indicating potential challenges ahead for investors. Japan’s Topix Index closes just above pre-tariff levels, while the S&P 500 sees a 12% rebound from its recent low. Consumer perspectives and tariff impacts add to investor confusion, with RBC strategist Lori Calvasina noting ongoing challenges. Brian Sozzi is Yahoo Finance’s Executive Editor, providing insights on market trends and developments.



Read more at Yahoo Finance: Why the tariff relief stock rally isn’t shaking Wall Street’s biggest bear