After Trump’s new tariffs, Dow futures dropped 963 points (2.3%), S&P 500 futures fell 3.4%, and NASDAQ 100 futures went down by 4.2%. This led to 10-year bond yields rising above 4.1% due to inflation and economic downturn fears, potentially worsening the struggling economy into a recession, experts warn.
David Rosenberg, founder of Rosenberg Research, predicts a likely recession by year-end due to the latest reciprocal tariffs. As a former chief economist at Merrill Lynch, he forecasted less than 1% US economic growth this year. He mentioned that Trump’s new import duties have set the stage for a potential recession before the end of the year.
Experts predict new tariffs may increase costs for American consumers. Spartan Capital Securities chief market economist Peter Cardilo warned of worsening inflation effects, possibly leading to recession. JonesTrading Institutional Services’ Michael O’Rourke cautioned that these tariffs may exacerbate the US economy’s slowdown and advised Trump to prepare for potential retaliatory actions from other countries.
Rising export costs to the US due to tariffs may hinder global trade, stalling economic growth worldwide. Rosenberg suggested that a bearish turn in the stock market could signal an end to the trade war.
Sources News From Various Digital Platforms, Websites, Journalists, And Agencies.
Leave a Reply