Chances of a markets-led recession arriving sooner than expected are growing by the day, investors and traders say


An ongoing meltdown in U.S. stock prices, driven by pessimism about the economic outlook, is boosting the risk of a recession that arrives sooner than some professional forecasters anticipate, traders and investors say.

Falling equity prices have already contributed to the disappearance of $5 to $8 trillion in household wealth this year, and are now being accompanied by weaker corporate outlooks. Analysts cited a revenue and earnings warning from a single company, Snapchat parent Snap Inc.
as the main reason behind Tuesday’s rout in technology stocks, the S&P 500 index’s slide to near bear-market territory, and a flight to safety in government bonds.

Professional forecasters tend to speak about the risks of a U.S. recession in terms of one- to two-year horizons. Economists surveyed by The Wall Street Journal in April put the probability of a downturn over the next year at 28%, on average. Meanwhile, a…

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