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Consumer sentiment falls to lowest level in over two years as worries about the labor market grow - MarketWatch

1. Consumer sentiment drops to a 32-month low. 2. Two-thirds of consumers expect rising unemployment, highest since 2009. 3. Inflation expectations have increased for both short and long term. 4. Consumer spending softens for the second consecutive month. 5. DJIA reacts negatively, dropping 1.40% in early trading.

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FAQ

Why Bearish?

Declining consumer sentiment and spending typically lead to lower economic growth, affecting stock markets negatively.

How important is it?

Consumer sentiment directly influences spending, which is critical for economic growth and stock market performance.

Why Short Term?

Immediate consumer sentiment declines often reflect quickly on stock prices; ongoing trends can prolong impacts.

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