Investors Exit U.S. Stocks Amid Growing Tariff Risks: What’s Next for the Market?

Investors are fleeing U.S. stocks at an unprecedented rate, according to a Bank of America survey. This shift marks the largest drop in U.S. equity allocation ever, fueled by pessimism about the economic outlook amid escalating trade tensions. Leading indexes are already feeling the impact, with the S&P 500 down 0.9%, the Dow off by 0.6%, and the Nasdaq dropping 1.6%. The looming imposition of 25% tariffs on imports from Mexico and Canada further shadows market stability. As analysts warn of potential disruption in the coming months, many fund managers remain cautious, with only 11% anticipating a recession. Investors are increasingly opting for cash and gold. The question remains: Can the economy rebound, or are we witnessing a seismic shift in investment strategies?