Goldman Sachs analysts are again raising the odds of a recession as markets continue to reel in the wake of President Trump’s sweeping tariff actions.
The bank warned in a new report on Sunday that it increased the probability of a recession in the U.S. to 45 percent, just a week after it forecasted odds at 35 percent as fears rise of an impending trade war.
Stocks fell again at the start of the week amid blowback over Trump’s latest move imposing hundreds of billions of dollars in new taxes on foreign goods.
The Dow Jones Industrial Average fell 1,400 points, marking a 3.5 percent drop. The S&P 500 index dipped 3.7 percent and the Nasdaq composite also fell 3.7 percent upon the market’s reopening.
World markets have also taken a hit.
In defending his latest tariffs over the weekend, Trump argued that the U.S. has been taken advantage of by other countries for years on trade.