S&P 500 Tanks as Consumer Sentiment Crashes to 41-Month Low—What’s Next for Markets?
Wall Street’s favorite index takes a nosedive—just as Main Street loses faith.
Fear & Loathing on Wall Street
The S&P 500 stumbles hard after consumer sentiment plunges to levels not seen since June 2022. Turns out inflation fatigue and rate-hike whiplash aren’t great for morale—or portfolios.
The Cynic’s Corner
Meanwhile, hedge funds are already spinning this as a ‘buying opportunity.’ Because nothing says ‘healthy market’ like cheering economic pain for short-term gains.
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“Consumer sentiment fell back about 6% this November, led by a 17% drop in current personal finances and a 11% decline in year-ahead expected business conditions,” said Surveys of Consumers Director Joanne Hsu.
Consumers Grow Uneasy as Shutdown Hits 38 Days
Hsu added that consumers are growing concerned about the negative impacts of the government shutdown, which is currently in its 38th day. In addition, November’s sentiment decline was witnessed across all age, income, and political groups.
Year-ahead inflation expectations are also on the rise, growing to 4.7% from 4.6%. Long-run inflation expectations were rosier, falling to 3.6% from 3.9%.
