Will the Stock Market Crash in 2025? The Economy Is Sounding an Alarm Seen in the Last 2 Recessions.

The S&P 500 (SNPINDEX: ^GSPC) fell into correction territory in March as investors processed the abrupt shift in U.S. trade policy under the Trump administration. The losses accelerated in April when the president unveiled an aggressive slate of reciprocal tariffs. At present, the benchmark index is 14% below its high.A forecasting tool from the Federal Reserve Bank of Atlanta suggests the U.S. economy contracted at an annualized 2.2% in the first quarter of 2025, which ended in March. That figure will not be finalized for several months, but it would be the first contraction exceeding 2% since COVID-19 caused a recession in 2020.Historically, the S&P 500 has declined sharply under those conditions. Here's what investors should know.Continue reading

Apr 20, 2025 - 09:19

Will the Stock Market Crash in 2025? The Economy Is Sounding an Alarm Seen in the Last 2 Recessions.

The S&P 500 (SNPINDEX: ^GSPC) fell into correction territory in March as investors processed the abrupt shift in U.S. trade policy under the Trump administration. The losses accelerated in April when the president unveiled an aggressive slate of reciprocal tariffs. At present, the benchmark index is 14% below its high.

A forecasting tool from the Federal Reserve Bank of Atlanta suggests the U.S. economy contracted at an annualized 2.2% in the first quarter of 2025, which ended in March. That figure will not be finalized for several months, but it would be the first contraction exceeding 2% since COVID-19 caused a recession in 2020.

Historically, the S&P 500 has declined sharply under those conditions. Here's what investors should know.