Stock sell-off worsens as Wall Street wonders how much pain Trump will accept for the economy
2 weeks, 4 days ago

Stock sell-off worsens as Wall Street wonders how much pain Trump will accept for the economy

LA Times  

The U.S. economy has already given some signals of weakening, mostly through surveys showing increased pessimism. The U.S. stock market’s sell-off is worsening Monday as Wall Street questions how much pain President Trump is willing for the economy to endure in order to get what he wants. It takes a little time.” Trump says he wants to bring manufacturing jobs back to the United States, among other reasons he’s given for tariffs. He sees a one in five chance of a recession over the next year, raising it only slightly because “the White House has the option to pull back policy changes” if the risks to the economy “begin to look more serious.” “There are always multiple forces at work in the market, but right now, almost all of them are taking a back seat to tariffs,” according to Chris Larkin, managing director, trading and investing, at E-Trade from Morgan Stanley. After getting an initial post-election bump on hopes that Musk’s close relationship with Trump would help the electric-vehicle company, the stock has since slumped on worries that its brand has become intertwined with Musk.

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