Will the Stock Market Crash if President Trump's Tariffs Cause a Recession? History Gives a Clear Answer.
The S&P 500 (SNPINDEX: ^GSPC) has declined 7% from its high as the Trump administration has imposed tariffs on goods from several countries. The president has also outlined plans for more aggressive reciprocal tariffs scheduled to take effect on April 2. That shift in U.S. trade policy has rattled Wall Street.In March, J.P. Morgan raised its recession probability forecast to 40%, up from 30% in January. Economist Bruce Kasman said, "We see a materially higher risk of a global recession due to U.S. trade policy." Similarly, 32 fund managers and strategists surveyed by CNBC raised their aggregate forecast to 36% in March, up from 23% in January.History says the S&P 500 would fall much further if the U.S. economy does indeed suffer a recession. Here's what investors should know.Continue reading
The S&P 500 (SNPINDEX: ^GSPC) has declined 7% from its high as the Trump administration has imposed tariffs on goods from several countries. The president has also outlined plans for more aggressive reciprocal tariffs scheduled to take effect on April 2. That shift in U.S. trade policy has rattled Wall Street.
In March, J.P. Morgan raised its recession probability forecast to 40%, up from 30% in January. Economist Bruce Kasman said, "We see a materially higher risk of a global recession due to U.S. trade policy." Similarly, 32 fund managers and strategists surveyed by CNBC raised their aggregate forecast to 36% in March, up from 23% in January.
History says the S&P 500 would fall much further if the U.S. economy does indeed suffer a recession. Here's what investors should know.
