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The probability of a recession is approaching 50%, Deutsche markets survey finds

1. There's a 43% chance of U.S. recession within 12 months. 2. Federal Reserve lowers GDP growth estimate to 1.7%, the worst since 2011. 3. Rising inflation outlook at 2.8% heightens stagflation concerns. 4. Market experts see recession risk at 50%-60%, impacting investor sentiment. 5. Uncertainty over tariff policies contributes to equity market corrections.

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FAQ

Why Bearish?

The near-equal chance of a recession pinpoints economic instability. Historical data shows previous recessions led to significant downturns in the S&P 500.

How important is it?

High probability of recession and stagflation is consequential for the economy, affecting S&P 500 indirectly through profit forecasts.

Why Short Term?

Concerns of recession and stagflation will affect market behavior in the upcoming months. Similar situations have historically resulted in quick market responses.

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