Recession Watch 2025
The 2025 economic outlook shows mixed signals, with US stocks correcting even as key stability indicators remain intact, amid signs of increased consumer strain and caution in the market.
Published on March 28, 2025
Recent updates for 2025 indicate a mixed economic picture. While US stocks have entered a correction—with indexes like the S&P 500 and Nasdaq experiencing declines on March 28, 2025—traditional indicators such as the yield curve and high-yield credit spreads remain stable. Notably, consumer behavior is shifting, with reports of individuals resorting to alternative financing methods, such as using Klarna for DoorDash orders, reflecting the mounting financial pressures.
Additional details from market reports emphasize caution among investors. Several Wall Street firms have trimmed their year-end targets for US equities amidst persistent inflation worries and tariff-induced market adjustments. Despite a backdrop of robust technology investments and some positive income growth, concerns over stagflation and reduced consumer sentiment continue to shape the economic landscape of 2025.