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153 days

Don't call it a recession — but bad vibes are back in a big way

1. Consumer sentiment drops sharply due to economic uncertainty and tariff policies. 2. Vibecession causes lower spending, potentially leading to a real economic downturn. 3. The Consumer Sentiment Index decreased sharply, indicating heightened financial anxiety. 4. Businesses report reduced optimism, affecting hiring and investment plans. 5. Economists suggest vibecession could lead to caution in consumer spending.

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FAQ

Why Bearish?

Historical instances show that declining consumer sentiment often precedes market downturns. Prior to bubbles burst, significant drops in sentiment indicated investor caution.

How important is it?

The article highlights significant economic uncertainty and tariff impacts directly affecting S&P 500 sectors. A bearish consumer sentiment can lead to decreased S&P 500 valuations.

Why Short Term?

Immediate consumer behavior changes can influence market liquidity and spending. Past market recoveries occurred after short-term sentiment rebounds.

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