Meanwhile, those who are worried we’re entering stagflation or a looming recession point toward recent signs of job market weakness and the risk that tariffs reignite inflation, slowing spending, and sluggish consumer confidence.

Goldman Sachs raised its forecasts for Chinese and U.S. economic growth, and cut its odds for a U.S. recession, after the countries agreed Monday to slash tariffs on each other's imports.

Goldman Sachs economists lowered their recession forecast for the U.S. to 35%, from 45% previously, following a temporary tariff truce between the U.S. and China on Monday, which lifted hopes of easing global trade tensions.