Global deal activity disappoints, M&A revenue falls as Trump pursues tariffs
1. A global trade war may impact deal-making on Wall Street. 2. Market turmoil affects bankers' predictions for a strong year.
FAQ
Why Bearish?
Historical trade wars often lead to decreased investor confidence, affecting stock prices. For example, the U.S.-China trade tensions in 2018 resulted in increased market volatility and downward pressure on the S&P 500.
How important is it?
Given the historical relationship between trade tensions and market volatility, this article has moderate to high relevance. The potential decrease in deal-making may dampen economic outlooks, impacting S&P 500 sectors reliant on corporate transactions.
Why Short Term?
Immediate market reactions to trade tensions typically manifest quickly. Investors may react swiftly to sentiment around trade discussions, leading to short-term fluctuations.