In a note to clients, Goldman Sachs analysts downgraded their growth prospects for the U.S. — the first time since 2022 that they had done so — citing “considerably more adverse” trade environment as a result of Trump’s tariff policy. The firm now sees growth averaging 1.7% for 2025, down from 2.4%, with the tariffs creating a drag via higher consumer prices, higher borrowing costs and delayed investment due to uncertainty. Access to credit may tighten, making it harder for individuals to secure loans for homes, cars, or education. Retirement savings and investments can also suffer as stock markets decline, reducing the value of 401(k) plans and other assets. Economic uncertainty can lead to reduced consumer spending, further slowing business growth and prolonging the downturn.
Meanwhile, problems are growing for the economy, and Trump’s policies could exacerbate them. On Friday, a University of Michigan consumer sentiment report plunged to its lowest level since the height of the inflation crisis in 2022. Consumer confidence in February registered its biggest monthly decline since August 2021 and fell the most in the first two months of any year since 2009, according to the Conference Board’s Consumer Confidence Index. Among the main stock movers today, Accenture (ACN) shares slid more than 7% to lead S&P 500 decliners after the professional services firm delivered a mixed earnings report and said the federal government’s drive to cut costs is hurting revenue. Shares of research and advisory firm Gartner (IT), which also faces headwinds related to government efficiency measures, fell nearly 7%.
After a bullish engulfing pattern marked the end of a three-week pullback in Boeing shares earlier this month, the stock has continued to trend higher, closing above both the 50- and 200-day moving averages in Wednesday’s trading session. It’s also worth pointing out the moving averages formed a golden cross early last month, a chart pattern that signals the start of a new uptrend. Five Below (FIVE) shares surged Thursday, a day after the discount retailer posted better-than-expected results and issued a rosy outlook as its holiday sales strategy paid off and it looked to open more locations.
Dow Jones Stocks List (by Dollar Volume)
JPMorgan economists alarmingly wrote last week that the US economy now has a 40% chance of falling into a recession this year. The bank cited a “less business-friendly stance” from US policy, including a more aggressive trade war than feared, as well as “aggressive efforts” by Elon Musk’s Department of Government Efficiency to slash federal hiring and spending. Traders have grown increasingly concerned that Trump’s policies could inflict serious damage on the economy. Instead, investors have poured money into traditional safe havens like government bonds and gold. Treasury yields, which trade in the opposite direction to prices, have tumbled over the past month. And spot gold prices on Friday hit $3,000 a troy ounce for the first time in history.
Instead, an independent Wall Street Journal commission decides whether a share is to be included or excluded. There are no fixed times for reviewing the composition of the index, since changes are only made by the commission as and when they are needed. “Right now we’re going through a typical pullback and probably will experience a mild correction before all is completed, which actually would be good for the resetting of the dials of this ongoing bull market,” he said.
Stocks Fall, Giving Back Earlier Gains. Nasdaq Slips 0.3%.
The major indexes had gained ground in three of the previous four sessions, with Wednesday’s surge coming after the Federal Reserve held interest rates steady and delivered its updated assessment of the economy. Treasury Secretary Scott Bessent inflamed those worries on Sunday when he told NBC that he’s not worried about the recent slump in stocks, saying “corrections are healthy.” He added that there are “no guarantees” the US will avoid recession. Common ways to track performance include investing in index tracker funds or Exchange Traded Funds (ETFs).
Stocks and Shares ISA
ET, while the S&P 500 declined 3.3 percent and the Nasdaq composite sank 4.7 percent. The market that embraced Trump for most of his first term and in the lead-up to his second has turned on the president. The S&P 500 closed in correction territory Thursday, falling 10% from the all-time high it set just three weeks ago. Boeing (BA) shares turned in their best one-day performance in nearly two years on Wednesday following bullish remarks from the plane maker’s chief financial officer, news of a new aircraft order and a favorable deliveries outlook from analysts. The stock was down 8% in recent trading, leading S&P 500 decliners, amid concerns about the company’s growth prospects as the economy slows and the U.S. government reins in spending. Last month, it reported that third-quarter fiscal 2025 net sales tumbled 42% year-over-year, with Sanghi noting that the performance reflected “the need for the decisive steps we are taking to realign our business.”
- Uncertainty about tariffs is paralyzing businesses who are unsure whether to hire and invest.
- Of the 12,320 analyst ratings on S&P 500 stocks, 55.7% of them are Buy ratings, according to a recent report from FactSet Research.
- While government interventions like stimulus programs or interest rate adjustments may help stabilize the economy, the effects on everyday Americans can be long-lasting.
- Traders have grown increasingly concerned that Trump’s policies could inflict serious damage on the economy.
The Federal Reserve Bank of Atlanta’s GDPNow model forecasts a -2.4 percent contraction in the U.S. economy for the first quarter of 2025, the worst since the COVID-19 pandemic’s economic downturn, according to Forbes. “You can’t really watch the stock market,” Trump said Sunday in an interview with Fox. But he has changed his tune as stocks first erased their post-inauguration gains and then their post-election gains.
A statement like this, the analysts said, could prevent permanent brand damage for the U.S. car maker. Microchip Technology announced last December that it planned to offload the Tempe facility to restructure its manufacturing operations. For the current quarter, Jabil sees adjusted EPS between $2.08 and $2.48, and revenue of $6.7 billion to $7.3 billion, ahead of estimates.
Members of the Fed’s policy committee scaled back their growth forecasts and raised their projections for inflation. While committee members maintained their expectations for two rate cuts in 2025, Chair Jerome Powell said the Fed is in no rush to adjust policy as it seeks clarity on the impact of Trump administration policies. US stocks climbed on Monday, with focus on more mixed economic data ahead of this week’s Federal Reserve policy meeting. “Tesla could actually net meaningful sales gains over how to day trade forex time,” TD Cowen analysts wrote this week. Shares in Coinbase, the U.S.’s largest crypto exchange, fell 10% Monday and has likewise erased its post-election gains. Boeing shares were down slightly in premarket trading Thursday at around $172.
Those who keep their jobs may see wage stagnation or reduced hours, leading to lower household income. Visiting the New York Stock Exchange as recently as December 12, Trump called the stock market “very important” in an interview with CNBC. Trump acknowledged tariffs could cause a “disturbance” and has declined to rule out a recession, saying his economic plan could be painful for some at first. Gold surging is among several signs that investors are concerned about America’s economic outlook, former Treasury Secretary Larry Summers told CNN on Friday.
- On Friday, a University of Michigan consumer sentiment report plunged to its lowest level since the height of the inflation crisis in 2022.
- The electric vehicle maker has also given up all its post-election gains as CEO Elon Musk has become a ubiquitous presence in Trump’s White House.
- Market volatility, including sustained stock drops and an inverted yield curve, often precedes downturns.
- A recession can create financial strain for families, forcing them to adjust their budgets and delay major purchases.
Business services
The tech-heavy Nasdaq fell 4% as it plunged deeper into “correction” territory, meaning it is off more than 10% from recent highs. It often leads to job losses as businesses cut costs to stay afloat. unholy grails – a new road to wealth Unemployment rates typically rise, making it harder for workers to find stable employment.
Accenture Slides Amid Concerns About Future Growth
Despite the downbeat quarter of sales and worsening consumer sentiment, Darden CEO Rick Cardenas said the company continues to see consumers spending. The third quarter of 2024 is the only quarter since 2022’s bear market in which Nvidia stock has fallen, and that was a modest decline below 2%. Much of that loss came in July—as Wall Street worried about geopolitical tensions and overspending on AI infrastructure—and early August—when one of Wall Street’s favorite leveraged trades backfired, causing a flash crash of U.S. tech stocks.
While government interventions like stimulus programs or interest rate adjustments may help stabilize the economy, the effects on everyday Americans can be long-lasting. Consumer prices can fluctuate, with some goods becoming more expensive due to supply chain disruptions while others may drop in price as demand weakens. Housing markets may slow, causing property values to decline and making it more difficult for homeowners to sell or refinance. A weakening housing market, rising bankruptcies, and tightening credit markets also raise red flags. While no single factor guarantees a recession, multiple warning signs increase concerns about economic instability. Under the commonly accepted definition of a recession—two consecutive quarters of negative GDP growth—this decline could set the stage for an official downturn.
Elon Musk’s DOGE Is Slowing Revenues, Sparking Uncertainty, Accenture Warns: Live Updates
The yield on the 10-year Treasury note, which has fallen in recent months as concerns about the economy have grown, forex trading without leverage was at 4.24% in late trading, down from 4.26% at yesterday’s close. The yield, which affects borrowing costs on all sorts of loans, notably mortgages, is trading at its lowest level in more than a week. The Fed said Wednesday that the economy continues to expand at a “solid pace” but that uncertainty about the outlook has increased.
“The stock market is losing its confidence in the Trump 2.0 policies,” said Ed Yardeni, president of Yardeni Research. Darden shares were up about 5% in midday trading and were among the top gainers in the S&P 500. The stock is up 14% over the past 12 months, outpacing the performance of the S&P 500 index over that period.