The recent stock market rally might face challenges as the White House appears to have backtracked on its stance regarding tariffs. This uncertainty could act as a potential time bomb for the market. Analysts suggest that inflation, rather than recession, poses the primary risk, indicating that the market may be misinterpreting economic signals.
Tariffs have been a significant factor influencing market sentiment. Any shift in the White House’s policy can lead to volatility, as investors reassess the potential impact on corporate earnings and consumer prices. Taimur Baig, an economist, explains why the market might be getting it wrong by focusing too much on recession fears while underestimating the risks of inflation.
— new from MarketWatch