Wall Street Banks Say Markets Are Flashing Rising Recession Risk

Published On Mar 5, 2025, 9:15 AM

Wall Street analysts signal an increased risk of recession due to trade tensions and decreasing economic indicators. Recent data show a rise in the probability of recession, particularly influenced by tariffs on trade with Canada, Mexico, and China. Key economic insights include declining factory activity, waning consumer confidence, and a notable tightening in the labor market. Despite these concerns, some analysts suggest it may be premature to assume a severe downturn given current low unemployment rates and some stable economic metrics.

Stock Forecasts

SPY

Negative

Due to rising recession risks indicated by tariffs and weakened economic data, investors should be cautious. The markets are likely to face increased volatility as economic sentiment polls decline and uncertainty prevails.

Related News

The private sector's hiring slowdown is the latest economic data to fall short of Wall Street's growth expectations.

President Donald Trump reveals details of phone call with Canada's Prime Minister Justin Trudeau after he called U.S. tariffs "very dumb."

Markets fell further Tuesday as President Trump's trade war began in earnest.