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Ominous market signals show more trouble could await U.S. stocks


Published on 2025-03-12 23:01:48 - Reuters
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  • The ominous market signals add to growing anxiety about the economic outlook. A Reuters poll last week found 95% of economists across Canada, the U.S. and Mexico said the risk of a recession in their respective countries had increased following Trump's chaotic tariff implementation.

The article from MSN Money discusses several ominous signals indicating potential further trouble for U.S. stocks. It highlights the S&P 500's recent performance, which has been volatile with a significant drop followed by a slight recovery, yet still showing a year-to-date loss. Key concerns include the Federal Reserve's aggressive rate hikes aimed at curbing inflation, which could lead to an economic slowdown or recession. The article points out that the yield curve inversion, where short-term yields exceed long-term yields, has historically preceded recessions. Additionally, there's mention of declining consumer confidence, weakening manufacturing data, and a notable drop in leading economic indicators. The piece also references the ongoing banking sector stress, exemplified by the collapse of Silicon Valley Bank, suggesting that these factors combined could exacerbate market downturns, with experts warning of a possible significant correction or bear market if economic conditions deteriorate further.

Read the Full Reuters Article at:
[ https://www.msn.com/en-us/money/markets/analysis-ominous-market-signals-show-more-trouble-could-await-us-stocks/ar-AA1AKL7O ]