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Trade wars feed inflation, slow economy and depress business confidence, S&P finds - MarketWatch

1. S&P Global reported declining confidence among U.S. business leaders. 2. Service-sector index fell to 51.4, indicating low growth. 3. Manufacturers saw slight optimism, index rose to 50.7. 4. Rising tariffs are increasing consumer inflation and production costs. 5. Economists warn prolonged trade wars could slow U.S. growth.

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FAQ

Why Bearish?

Rising inflation and low confidence can lead to reduced consumer spending, impacting S&P 500 performance. Historical examples include the 2018 market downturn due to tariff fears.

How important is it?

The findings directly influence economic outlook, impacting investor sentiment toward the S&P 500 and related stocks.

Why Short Term?

Immediate trading reactions to economic indicators show short-term volatility, especially if confidence continues to decline.

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