2256 GMT - U.S. equity futures have fallen more than 2.3% following President Trump's far more hawkish than expected tariff announcements. The tariff rates far exceed baseline expectations, and if they aren't negotiated down promptly, expectations for a recession in the U.S. will rise dramatically, says Tony Sycamore, market analyst at IG. Markets are very likely to see Goldman Sachs revise higher their 12-month estimate of a recession in the U.S. from 35% to 50%, he adds. U.S. equity markets aren't priced for a recession, and in the event of a recession in the U.S., stock markets could easily fall another 10%-15% below their mid-March lows, he adds. (james.glynn@wsj.com; @JamesGlynnWSJ)
(END) Dow Jones Newswires
April 02, 2025 18:56 ET (22:56 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Comments