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America's small businesses preparing for recession with Trump tariffs: CNBC|SurveyMonkey survey

1. Economic optimism is waning amid tariff uncertainties and recession fears. 2. Only 30% of small businesses rate the economy as excellent or good. 3. 70% of small business owners foresee a recession soon. 4. Significant price hikes expected in sectors affected by tariffs. 5. Fed Chair Powell warns tariffs could dampen growth and raise inflation.

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FAQ

Why Bearish?

The growing pessimism among small businesses reflects lesser economic activity. Similar economic downturns in history have shown that periods of negative sentiment often lead to S&P 500 declines.

How important is it?

Tariff impacts and economic sentiment are critical for S&P 500, affecting multiple sectors. With significant consumer and corporate uncertainty, the market may respond negatively.

Why Short Term?

The immediate tariff impacts and recession fears suggest potential quick economic deterioration. Past recessions occurred swiftly following similar sentiments.

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