US President Donald Trump and his tariffs have taken a bull stock market and are on the precipice of turning it into a bear faster than any president has overseen in modern history.
If the stock market closes in bear territory โ a drop of 20% from a recent peak โ it would be the earliest in a new administration a bull market has turned into a bear in the history of the S&P 500, which dates back to 1957.
These same tariffs may also take a booming economy and turn it into a recession.
Goldman Sachs is the latest Wall Street bank to warn that US President Donald Trumpโs trade war could crash the US economy into a damaging recession.
As financial markets plunged, Goldman Sachs economists delivered a report to clients titled โCountdown to Recessionโ that slashed their 2025 GDP forecast to 0.5% and raised their 12-month recession probability from 35% to 45%.
The investment bank cited the โsharp tightening in financial conditions, foreign consumer boycotts, and a continued spike in policy uncertainty that is likely to depress capital spending by more than we had previously assumed.โ
