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Consumer sentiment sours as worries grow over outlook for U.S. economy - MarketWatch

1. Consumer sentiment fell to 64.7, lowest since November 2023. 2. Inflation expectations rose to 3.5%, largest increase since May 2021. 3. Retail sales softened in January, raising concerns about consumer spending. 4. Buying conditions for durable goods plunged 19% due to tariff fears. 5. Economists predict strong consumer spending as labor market remains solid.

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FAQ

Why Bearish?

Declining consumer sentiment and rising inflation expectations could dampen spending, historically leading to lower stock prices.

How important is it?

Lower consumer sentiment and inflation expectations can significantly influence S&P 500 performance as consumer spending is a major driver of economic growth.

Why Short Term?

Immediate consumer sentiment impacts can quickly affect market performance, as seen after previous sentiment drops.

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