Stock Market Crash in 2026? Bad News About President Trump's Tariffs and a Warning From the Federal Reserve Explain Why It's Possible.
The Motley Fool·2026-02-18 08:44
The S&P 500's expensive valuation could lead to a steep decline in stock prices, especially if tariffs become a material economic headwind.In September, Federal Reserve Chair Jerome Powell warned investors that stocks were expensive, but the S&P 500 (^GSPC +0.10%) has since added about 3%. Not a substantial return, but large enough to say the market has brushed aside the warning to some degree.However, recent studies suggest President Trump's tariffs will slow economic growth, despite his assurances to the ...