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Americans’ economic views shift dramatically by party

Most Americans view the economy as worsening; Republicans drastically shift to optimism post-Trump’s re-election, revealing stark political divides.

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Most Americans view the economy as worsening; Republicans drastically shift to optimism post-Trump’s re-election, revealing stark political divides.

In Short

Most Americans believe the economy is worsening, with strong political divides shaping perceptions. While some Republicans see improvement, many Democrats are increasingly pessimistic, highlighting a disconnect between economic indicators and public sentiment.

Most Americans perceive the economy as worsening, with a recent Harris poll revealing that 51% share this sentiment. This contrasts with 20% who think it is improving and 29% who feel it remains unchanged.

The poll highlights a significant shift in Republican opinions since Donald Trump’s re-election. Currently, 39% of Republicans view the economy as improving, a rise from 8% last May. In contrast, 69% of Democrats now believe it is worsening, up from 36% last year.

The findings show a disconnect between official economic indicators, which show low unemployment and slow inflation, and public perception. Around 43% of Republicans think the US is in a recession, a decrease from 67% last May.

The poll also indicates that opinions on Trump’s tariffs vary significantly by party affiliation. While support exists among staunch Republicans, most independents and a significant portion of Republicans fear negative impacts from the tariffs; 49% of those polled believe they will harm the economy.

Despite Trump’s assurances of economic improvement, many Americans remain sceptical, particularly regarding personal financial impacts. Only 33% of Republicans expect tariffs to have positive effects on their finances.

Money

Markets tumble as Trump tariffs, Greenland rhetoric and Europe backlash collide

U.S. stocks plummet over 800 points amid renewed tariff threats and political tensions from Trump, sparking global trade concerns.

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U.S. stocks plummet over 800 points amid renewed tariff threats and political tensions from Trump, sparking global trade concerns.


U.S. equities took a sharp hit as markets reacted to renewed tariff threats and heightened political rhetoric from President Donald Trump. The Dow plunged more than 800 points, with the S&P 500 and Nasdaq also sliding as investor nerves rattled risk assets.

The sell-off highlights growing concern around global trade tensions and geopolitical uncertainty, with markets struggling to price in what comes next for U.S. economic leadership and policy direction.

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Gold hits record highs as investors flee risk

Gold surges amid global uncertainty, with February futures rising 1.71% to $4,674.20 per ounce, signaling safe-haven demand.

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Gold surges amid global uncertainty, with February futures rising 1.71% to $4,674.20 per ounce, signaling safe-haven demand.


Gold is shining brighter than ever as investors flock to safe-haven assets amid global uncertainty. U.S. gold futures for February delivery jumped 1.71% to $4,674.20 per ounce, while spot gold rose 1.6% to $4,668.14.

The surge comes as geopolitical tensions continue to worry traders, prompting a rush into metals perceived as stable and secure. Analysts say gold is proving its status as the ultimate hedge during turbulent times.

Investors are closely watching markets as gold sets new benchmarks, signalling growing caution across the financial landscape.

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Markets edge higher as 10-year yields hit new highs

Major stock indices rise slightly; 10-year Treasury yield hits 4.23% amid Fed Chair speculation, affecting small and mega-cap stocks.

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Major stock indices rise slightly; 10-year Treasury yield hits 4.23% amid Fed Chair speculation, affecting small and mega-cap stocks.


All major stock indices are starting the week slightly higher, giving investors cautious optimism. Analysts are keeping an eye on movements in small caps and mega-cap tech stocks amid these early gains.

The yield on the 10-year Treasury note has climbed to 4.23%, the highest since last September. This follows Kevin Warsh emerging as the frontrunner for the next Federal Reserve Chair, sparking speculation on future monetary policy.

Rising yields could trigger a pullback in small-cap stocks, while investors may pivot toward mega-cap tech, expected to deliver strong earnings growth. Overall, the market is likely to see a neutral to slightly bearish trend next week due to overbought conditions.

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