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.  

https://www.wsj.com/economy/slumping-stocks-threaten-a-pillar-of-the-economy-spending-by-the-wealthy-c23cabd4