British media questions Trump, US stocks may fall 20%

Recently, the United States and the United Kingdom reached a trade agreement, and investors are hoping this will lead to more trade agreements being finalized soon. However, UK Sky News reported that this agreement was signed remotely by UK Prime Minister Starmer and US President Trump, without any physical documents, and Starmer mentioned that the details of the agreement still need to be finalized.

British media feel that the US is now eager to reach bilateral trade agreements with many countries, and the UK-US agreement is just a way for Trump to find a way to adjust his policies. A Sky News reporter directly asked Trump if he was exaggerating the role and significance of this agreement, especially since he currently needs political achievements to get out of his predicament. Trump responded that this is the best agreement that can be reached at the moment.

Mark Hackett, Chief Market Strategist at Nationwide, said: "There has been some good news this week, but the market is still fluctuating greatly with the news. Until we see tangible measurable results, the market is likely to remain volatile."

Goldman Sachs recently issued a warning that the US stock market could fall nearly 20%, and an economic recession poses a major problem for the stock market. Goldman Sachs Chief Political Economist Alec Phillips reminded that Trump's statements about the UK-US trade agreement mean that many countries may face higher tariffs in the future than before his second term. Goldman Sachs Chief Economist Jan Hatzius expects a 45% chance of a US economic recession in the next 12 months, also emphasizing that the recession risk is quite evident.

Federal Reserve Governor Michael Barr also stated that Trump's tariff policy could slow US economic growth this year while prices rise. He is concerned that if the economy slows down, tariffs will lead to higher unemployment rates; if prices rise and unemployment also rises, the Federal Reserve will be in trouble.