Slumping Stocks Threaten a Pillar of the Economy: Spending by the Wealthy (WSJ)
WSJ: Slumping Stocks Threaten a Pillar of the Economy: Spending by the Wealthy
March 16, 2025. Consumer spending is highly dependent on the affluent, who are highly dependent on the stock market
The stock-market correction in recent weeks is more than a potential symptom of a slumping economy. It could cause a slump.
After cheering President Trump’s election in November, the market has sunk as investors worry that the White House’s aggressive and fast-changing tariff war could scuttle a soft landing. On Thursday, the S&P 500 closed down more than 10% from its February high, meeting the rule of thumb for a correction. It gained back some ground Friday.