1. Global GDP growth is projected to slow from 3.2% to 3.0% by 2026. 2. U.S. GDP growth expected to decline to 2.2% in 2025 and 1.6% in 2026. 3. Higher trade barriers and geopolitical uncertainty impact investment and consumer spending.
Slowing economic growth could reduce corporate earnings, negatively affecting S&P 500 performance. Historically, economic slowdowns often lead to decreased stock valuations across major indices.
The article discusses projections that directly influence investor expectations and market behavior affecting the S&P 500. Slow GDP growth likely leads to lower consumer spending and corporate profits.
Projected GDP declines will affect market sentiment and valuations over the coming years. Similar past events, such as the 2007-2008 financial crisis, led to long-term market downturns.