"We still believe the most likely outcome is slow growth and firm inflation: Not a recession, but a backdrop where the adverse effects of trade and immigration controls on growth outweigh the boost from deregulation and fiscal largesse," Morgan Stanley strategist Michael Zezas wrote.

The U.S. and the European Union have agreed to a trade deal that will result in 15% tariffs on most imported European goods, President Donald Trump announced Sunday. The deal comes a week before Trump’s Aug.