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Tariffs have raised the probability of a U.S. recession to around 35%: Pimco managing director

1. Increased recession probability for the U.S. now at 35%. 2. Increase due to implemented tariffs affecting economic outlook. 3. Predicted GDP growth slowed to 1-1.5%, still indicating expansion. 4. Trade policies may boost domestic consumption unexpectedly.

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FAQ

Why Bearish?

Rising recession fears typically dampen investor sentiment and stock market performance.

How important is it?

The article highlights potential economic downturns, significantly impacting investor sentiment and S&P 500 valuations.

Why Short Term?

Recession concerns often have immediate effects on market volatility and S&P 500 performance based on historical reactions to economic forecasts.

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