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The Recession Trade Is Back on Wall Street

Bank stocks and the Russell 2000 have slumped on growth concerns, while Treasurys and gold have rallied

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Trade tensions and signs of slowing growth have driven major indexes lower. Photo: Seth Wenig/Associated Press

Wall Street is having another growth scare.

Investors entered 2025 optimistic that an already strong U.S. economy could get an extra boost from an administration pushing market-friendly tax cuts and regulatory rollbacks. Instead, trade tensions and signs of slowing growth have driven major indexes lower in recent weeks. 

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