Why stock market worries about tariff uncertainty might be a 'red herring': Morning Brief

Published On Feb 25, 2025, 6:00 AM

The stock market is near record highs despite underlying concerns about the economy, including weak manufacturing data and rising inflation. Economist Neil Dutta from Renaissance Macro points out that discussions about tariffs distract from more fundamental economic issues indicating a slowdown. He notes that consumer spending is decreasing, housing is weak, and government spending is slowing, forecasting potential surprises on the downside for the economy. Expectations are for stocks and long-term interest rates to decline as the market adjusts to a slowing economy and fewer jobs.