Market Watch (May 17)
“President Donald Trump’s move to defuse an ugly trade war with China not only sparked a massive stock-market rally but also drove down the chances of a recession — for now.” Though it’s a welcome sign of relief, numerous obstacles remain. Nobody can rest assured. “Ongoing trade wars have not gone away, for one thing. Trump could change his mind or the U.S. could fail to strike more economic-friendly deals with China, after that 90-day pause, and other countries.” Moreover, the uncertainty has “made households and business hesitant to spend, hire and invest. Confidence has plunged in the past few months, and anxiety is unlikely to fade quickly.” U.S. growth remains likely “to taper off sharply this year.”
Tags: 90-day pause, China, Confidence, Deals, Defuse, Hire, Households, Invest, Obstacles, Recession, Relief, Spend, Stock-market rally, Trade war, Trump, U.S., Ugly, Uncertainty
