Investment strategist warns trade war could turn 'recession fears' into 'depression fears'
Anxiety over the U.S.-China trade war is continuing to heighten after the Dow Jones Industrial Average, Nasdaq Composite, and S&P 500 all had their worst day of 2019.
This market turmoil occurred on Monday after China devalued its currency and after President Trump announced new tariffs on Chinese imports. The Dow was down 767 points by the end of the day.
Investors, Axios reports, are starting to fear that the trade war "could do massive damage to the entire global economy." The report goes on to cite Jim Paulsen, The Leuthold Group chief investment strategist, who in a memo to clients on Monday wrote, "If the stimulus introduced about the globe in the last six to nine months does not trigger at least some bounce in the economic and earnings recovery, it won't be recession fears that will spike, it will be depression fears."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
The Treasury Department later on Monday officially labeled China a currency manipulator in yet another escalation of the trade war. Amid Monday's market turmoil, Lawrence Summers, who served as National Economic Council director under former President Obama, warned that "we may well be at the most dangerous financial moment since the 2009 Financial Crisis."
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Brendan worked as a culture writer at The Week from 2018 to 2023, covering the entertainment industry, including film reviews, television recaps, awards season, the box office, major movie franchises and Hollywood gossip. He has written about film and television for outlets including Bloody Disgusting, Showbiz Cheat Sheet, Heavy and The Celebrity Cafe.
-
4 tips for keeping your resolutions
The Week Recommends New Year's resolutions seem made to be broken, but with a few adjustments, you can give yourself a shot at sticking with it
By Theara Coleman, The Week US Published
-
'His disdain for international rules could eviscerate the laws of war'
Instant Opinion Opinion, comment and editorials of the day
By Justin Klawans, The Week US Published
-
Getty Images and Shutterstock merge into a picture powerhouse to combat AI
The Explainer The $3.7 billion deal is one of the largest in the industry's history
By Justin Klawans, The Week US Published
-
US port strike averted with tentative labor deal
Speed Read The strike could have shut down major ports from Texas to Maine
By Peter Weber, The Week US Published
-
Biden expected to block Japanese bid for US Steel
Speed Read The president is blocking the $14 billion acquisition of U.S. Steel by Japan's Nippon Steel, citing national security concerns
By Peter Weber, The Week US Published
-
Judges block $25B Kroger-Albertsons merger
Speed Read The proposed merger between the supermarket giants was stalled when judges overseeing two separate cases blocked the deal
By Peter Weber, The Week US Published
-
Rupert Murdoch loses 'Succession' court battle
Speed Read Murdoch wanted to give full control of his empire to son Lachlan, ensuring Fox News' right-wing editorial slant
By Peter Weber, The Week US Published
-
Bitcoin surges above $100k in post-election rally
Speed Read Investors are betting that the incoming Trump administration will embrace crypto
By Peter Weber, The Week US Published
-
Enron mystery: 'sick joke' or serious revival?
Speed Read 23 years after its bankruptcy filing, the Texas energy firm has announced its resurrection
By Peter Weber, The Week US Published
-
US charges Indian tycoon with bribery, fraud
Speed Read Indian billionaire Gautam Adani has been indicted by US prosecutors for his role in a $265 million scheme to secure solar energy deals
By Peter Weber, The Week US Published
-
Boeing machinists approve contract, end strike
Speed Read The company's largest union approved the new contract offer, ending a seven-week strike
By Peter Weber, The Week US Published