Wall Street recoils at Trump’s trade war

The phrase "Wall Street recoils at trade war" signifies that the financial sector reacts negatively to the implementation or threat of trade tariffs and other trade-related conflicts. Here's a breakdown of what that generally entails:

 * Market Volatility:

   * Trade wars create uncertainty, which is anathema to financial markets. This uncertainty leads to increased volatility, with stocks and other assets experiencing sharp swings in value.

   * Investors become nervous about potential disruptions to global supply chains, reduced trade flows, and the overall impact on economic growth.

 * Economic Concerns:

   * Wall Street worries that trade wars can stifle economic growth by increasing costs for businesses and consumers.

   * Tariffs can lead to retaliatory measures from other countries, further escalating the conflict and damaging international trade relations.

 * Business Impact:

   * Companies that rely on international trade, particularly those involved in manufacturing and agriculture, are particularly vulnerable to trade wars.

   * Increased costs and disruptions to supply chains can negatively impact corporate earnings, leading to lower stock prices.

 * Investor Sentiment:

   * Trade wars can erode investor confidence, leading to a "risk-off" mentality. This can result in investors moving their money away from stocks and other risky assets and into safer investments like bonds.

In summary, when Wall Street "recoils," it means that the financial markets are reacting negatively to the potential or actual economic damage caused by trade wars.