Chris Toomey, a senior executive at Morgan Stanley, believes U.S. markets are turning a blind eye to the economic drag that could emerge from renewed tariff policies tied to Trump administration.
Speaking in a recent CNBC interview, Toomey said that while equity benchmarks like the S&P 500 are flirting with record highs, the market appears to be pricing in overly optimistic scenarios.
“Investors are behaving as if the most favorable outcomes are guaranteed,” he warned, referencing expectations of widespread 10% tariffs and steeper 30% duties on Chinese imports.
Toomey also flagged the growing risk of stagflation—a toxic mix of slowing economic growth, persistent inflation, and elevated unemployment.
He pointed to the diverging performance between tech giants and the broader S&P 500, saying firms exposed to China are already feeling the squeeze.
While sluggish GDP could eventually prompt the Federal Reserve to consider rate cuts in 2026, Toomey emphasized that current conditions could first strain corporate margins and weigh on consumer demand.
California is pushing forward a legislative plan that could redefine how the state handles inactive crypto holdings.
Circle, the company behind the USDC stablecoin, has raised more than $1.1 billion in a highly anticipated IPO, outperforming its earlier fundraising targets.
Steve Eisman, the famed investor known for forecasting the 2008 housing collapse, is sounding the alarm—not on overvalued tech stocks or interest rates, but on the escalating risk of global trade disputes.
Kevin Hassett, head of the National Economic Council in Trump’s second term, has revealed a multi-million-dollar investment in crypto exchange Coinbase—prompting concerns over potential conflicts of interest in Washington.