Macquarie expects the savage sell-off on Wall Street that has already erased trillions of dollars in value will intensify as US President Donald Trump’s aggressive economic policies stifle consumer spending, pushing stocks into a bear market.

Australia’s largest investment bank warned on Monday that the health of the US consumer – a key indicator for the outlook of the sharemarket – is getting battered by Trump’s sweeping tariffs, government spending cuts that is pressuring household incomes and the ramp up in deportations.