Wall Street Warns About Consequences of Lengthy Trade Fight

  • Morgan Stanley flags possible recession, if things escalate
  • Raymond James sees currency threats as trade war’s next phase

Photographer: Qilai Shen/Bloomberg

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Economists and analysts are warning about the ramifications of a long-lasting trade war between the U.S. and China, as Beijing has pledged to respond if the U.S. insists on imposing additional tariffs, while President Trump said new import taxes on a long list of goods could go “well beyond” 25%.

Stocks were slumping and bonds were rising, with the S&P 500 down as much as 0.7% to the lowest since June 28, and yields on 10-year Treasuries falling about 2 basis points to 1.88%.