1. Goldman Sachs raised recession risk to 45% due to tariffs. 2. GDP growth forecast lowered to 0.5% for Q4 and 1.3% for 2025. 3. Financial conditions tight, foreign boycotts impacting U.S. exports. 4. Market futures declined sharply amid worsening economic outlook. 5. Fed may cut rates three times by June to support growth.
The increased recession risk and lowered GDP forecasts indicate potential economic slowdown, impacting S&P 500. Historical evidence shows that recession fears can lead to market declines, as seen in Q4 2018.
The article discusses significant economic forecasts that can directly affect the S&P 500 and overall market sentiment. Increased recession risk typically leads to lower investor confidence.
The impending tariffs and recession concerns will likely affect market sentiment immediately. Recent history shows that market responses to GDP forecasts are usually swift.