Nasdaq 100 Tumbles—Even as Consumer Sentiment Finally Climbs After 6-Month Slump
Markets shrug off good news—again. The Nasdaq 100 takes a dive despite consumers flashing their first glimmer of optimism in half a year. Guess Wall Street’s too busy chasing the next shiny thing to care about fundamentals.
Tech stocks lead the drop. No surprise there—when the Fed’s breathing down your neck, even a whiff of positive data can’t save overpriced growth names. But hey, at least retail investors are feeling slightly less miserable.
Another day, another disconnect between Main Street and Wall Street. Maybe consumers know something the algos don’t—or maybe everyone’s just pretending the economy isn’t a rigged casino. Place your bets.
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Preliminary consumer sentiment for June tallied in at 60.5, beating the estimate for 53.5 and improving from 52.2 in May.
“Moreover, all five index components rose, with a particularly steep increase for short and long-run expected business conditions, consistent with a perceived easing of pressures from tariffs,” said Survey of Consumers Director Joanne Hsu.
Consumer Sentiment Rebounds after 6-Month Slump
On top of that, UM’s year-ahead inflation expectation is now at 5.1%, down from 6.6% last month. Long-run inflation expectations are now at 4.1%, down from 4.2%. Both the year-ahead and long-run expectations sit at three-month lows.
At the same time, consumers are still worried about business conditions, the stock market, and the labor market, with confidence in all three topics below where it was six months ago.
The Nasdaq 100 is down by 1.13% at the time of writing as concerns about the Israel-Iran conflict have offset the better-than-expected consumer sentiment report.
