The Market's Downward Spiral: Economic Growth Now the Key Driver of Equity Indices
Stocks have struggled to start 2025, with disappointing economic data and fears over President Trump's tariffs weighing on investors. Recent corporate earnings growth has been unable to lift stocks out of their slump, with the S&P 500 essentially flat on the year and about 5% off its all-time high. Strategists argue that a rebound in the economic growth story is key to reversing the recent equity market weakness.
- The recent market sell-off highlights the fragility of investor confidence when faced with uncertainty, underscoring the need for policymakers to provide clarity on their plans.
- Can a significant improvement in US economic growth data overcome the lingering concerns about President Trump's trade policies and restore investor optimism?