Wall Street Forecasters Including Goldman Sachs Warn of Recession Risk From Trump Tariffs Despite S&P 500 Down 3.3% and Stable Bond Yields

Despite warnings from Wall Street forecasters, including analysts from Goldman Sachs, that tariffs imposed under President Trump's administration could trigger a recession, stock market investors have remained relatively unfazed. The S&P 500 index has declined by only 3.3% year-to-date, while bond yields and the U.S. dollar exchange rate have stabilized, indicating a level of investor confidence or reduced concern about the economic impact of the tariff war. This divergence between cautious advisory outlooks and market performance highlights a disconnect between forecasts and trader behavior amid ongoing trade tensions.