Consumer Confidence at 10-Year Low, Expect Bearish Stock Market
Consumers are not confident about the future, according to the Conference Board and their report on Tuesday, which shows confidence levels at their lowest point in a decade.
For the last four months, consumer confidence has been falling and it dropped a further 7.2 points to 92.9 in March. This is likely to have an impact on a fragile stock market, which has seen weeks of downward movement and was just starting to see indications of recovery.
That was the current conditions reading, and the board’s measure for future conditions was even worse. That fell to 65.2, down 9.6 points. Recession indicators usually anticipate a reading of 80 points, so this is indeed worrisome for investors, and this reading marked the lowest that future indicator has been in 12 years.
Worries about the economy and the job market as well as the cost of living have grown rapidly. Future income confidence was high in recent months, but it has dropped considerably in March. The Conference Board looks at job prospects, income, and business prospects to develop these readings, and their report is sure to have an impact on the stock market.
What to Expect from the Stock Indices
The Dow Jones closed marginally up on Tuesday, climbing 0.46%. The S&P 500 climbed just 0.16% for the day, and the Nasdaq Composite gained 0.46%. We expect these numbers to all drop once the consumer confidence report is digested.
The stock market outlook was low as well, and expectations for the future are tempered by fears over tariffs, inflation, and a contracting economy. About 63% of those polled said they expected stock prices to drop in the near future, which is the first time these numbers have been negative since 2023.
As well as the stock market has done this week, this report could put a stop to the upward progress and cause many of those gains to disappear. The biggest impact on the market for the near future is likely to come, however, from Donald Trump on April 2nd when he announces the next move for tariff policy.
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