Wall Street is worrying about the U.S. economy

A photograph of US President Donald Trump sits on a desk as traders and financial professional work on the floor of the New York Stock Exchange at the opening bell on January 27, 2025 in New York City. (Credit: Angela Weiss—AFP/Getty Images)

• Recent data from the Atlanta Fed suggests an economic contraction is in the cards for the first quarter of 2025. Uncertainty surrounding trade and immigration policy looms large, and investors will also closely watch how DOGE layoffs impact unemployment as consumer sentiment weakens. 

President Donald Trump’s election victory initially had the stock market in raptures. The S&P 500 surged 6.25% from Nov. 5 to Feb. 19, when the index hit a new record high above the $6,145 mark. The S&P is down more than 3% since, however, as soft economic data and renewed tariff threats from the Trump White House elevate Wall Street’s concern about the state of the U.S. economy.