Stocks Rocket to All-Time Highs as Consumer Sentiment Shifts Bullish
Wall Street's party just got louder—equities blast past previous records as Main Street finally cracks a smile.
The optimism contagion
No hard numbers? No problem. When the mood swings, markets fly. Traders are pricing in pure sentiment now—fundamentals can wait until Q3 earnings.
Paper gains meet real skepticism
Another 'historic' rally built on surveys and hopium. Remember: consumer confidence indexes track how people feel about spending money they might not actually have.
Active verbs only? Done. Markets surge, skeptics shrug, and your 401(k) gets a sugar rush. Just don't ask what happens when the sentiment survey comedown hits.
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The University of Michigan’s June Index of Consumer Sentiment showed a 16% jump from May, marking the first increase in six months and tallying at 60.7 compared to the estimate for 60.5. At the same time, it’s still down by 11% on a yearly basis. A higher reading indicates a more optimistic outlook on the economy.
“Despite June’s gains, however, sentiment remains about 18% below December 2024, right after the election; consumer views are still broadly consistent with an economic slowdown and an increase in inflation to come,” said Survey of Consumers Director Joanne Hsu.
Inflation Expectations Drop while Consumer Sentiment Jumps
Participants polled by the UM now expect year-ahead inflation of 5.0%, down sharply from 6.6% in May. Long-run inflation expectations fell to 4.0% from 4.2%.
While both of these figures dropped, they still remain significantly above inflation expectations during the second half of 2024, signaling a persistent fear of tariff-driven inflation.
Meanwhile, consumers have shrugged off the risk of the Israel-Iran war to the U.S. economy following a ceasefire.
The S&P 500 is up by 0.60% at the time of writing.
