Despite growing recession concerns, the stock market has been climbing due to optimism around Trump’s progress on trade deals and potential tax cuts.
While Treasury Secretary Scott Bessent’s comments about these developments have helped calm Wall Street, economists remain concerned. Wilmington Trust now estimates a 60% chance of recession in the next year.
However, stocks may be rising because investors believe much of the potential damage has already occurred in recent market drops, and historically, stocks tend to recover relatively quickly after recession-related declines.
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