Key Takeaways:

  • Goldman Sachs revises U.S. GDP growth for 2025 down from 2.4% to 1.7% due to trade policy concerns.

  • Wall Street anxiety grows over Trump’s tariff stance and economic recession risks.

  • U.S. stock markets plunged, with the Nasdaq down 3.9% and the S&P 500 falling 1.5%.

  • Recession risk now stands at 20%, per Goldman Sachs analysts.

U.S. Economic Outlook Weakens Amid Trade Uncertainty

Goldman Sachs has slashed its U.S. economic growth forecast for 2025, citing heightened risks from President Donald Trump’s trade policies. The bank now expects the economy to expand by just 1.7%, a significant downgrade from its previous 2.4% projection.

The revision follows escalating concerns on Wall Street, where investors are reacting to Trump’s refusal to rule out an economic recession. While Trump has doubled down on protectionist policies, some analysts believe he may soften his stance on tariffs if the economy shows further signs of strain.

Stock Market Sell-Off Deepens Amid Uncertainty

The U.S. stock market plunged on Monday, with the Nasdaq tumbling 3.9% and the S&P 500 falling 1.5%, reflecting investor fears of economic slowdown and heightened trade tensions.

Goldman Sachs analysts now assign a 20% probability of a U.S. recession, a warning that trade policies and geopolitical uncertainty could further weigh on economic stability.