The US stock market has started in volatile in 2025. However, things got worse when President Trump’s economic policies arrived on the day of liberation. In fact, Goldman Sachs has recently said that Trump’s tariff plans now place the US in a “event-driven” bear market.
Wall Street rebounded prominently to begin on Tuesday before things plummeted. Specifically, the Dow Jones Index scored 1,400 points after the Trump administration announced it would place a 104% tariff on China. With many people expecting a trade war, experts are not optimistic about what this means for the investment market in the short term.
Goldman Sachs speaks at the Trump Tariff-Driven Bear Market in 2025
There is no denying that the US stock market is in a place of concern just three months in a year. Megacap stocks such as Nvidia (NVDA) and Tesla (TSLA) have declined and no scaffolding could be found. But the arrival of new, increasingly aggressive economic policies by the US president only exacerbated concerns.
Now, things are expected to get much worse before they get better. In fact, Goldman Sachs recently said that a new Trump tariff plan has put the United States in a “event-driven” bear market. Plus, their sentiment reaches as banks like JPMorgan increased the risk of this year’s recession.
According to a CNBC report, Goldman Sachs expressed concern that the bear market could become “cyclical” amid concerns over economic policy. Specifically, they worry that the risk of retaliation will only increase the county’s economy’s vulnerability.
“We claim to be in the event-driven bear market right now,” said Peter Oppenheimer, the bank’s top global strategist. “The event in this case was “Robation Day,” which caused a sharp rise in tariffs. ”
“It certainly could be seen as self-harm, especially in the US, where economists have a 15% chance of recession, given the strong outlook for global economic activity at the beginning of the year,” he added.
In the tariff plan, economists lower their 2025 Q4 GDP growth forecast by 0.5%. Additionally, they increased the country’s chances of recession to 45%. Things may only become more worrying as new import duties have arrived in response to China’s opposition.
