Crypto

S&P 500 Extends Losses as April Consumer Confidence Exceeds Expectations – By ASC


MAIN CONTENT OF USER CONFIDENCE:

  • April consumer confidence fell to 107.3 from 107.6 in March, disappointing consensus expectations
  • The decline in sentiment was driven by a pullback in the current situation index
  • S&P 500 extends losses following survey results as declining sentiment may hurt future household spending and, therefore, corporate income

Most Read: S&P 500 and Nasdaq 100 Review – Annual Low Test Likely to Appear

Consumer confidence unexpectedly declined at the start of the new quarter, as soaring inflationary pressures continued to weigh on household budgets. According to the Conference Board, its Consumer Confidence Index reversed part of its March rise and dropped to 107.03 from 107.6, disappointing expectations for a reading of 108.00, a sign that pessimism in the broader economy will not go away.

Tracking the results of the survey, the current situation gauge, based on Americans ’assessments of current business and hiring conditions, fell to 152.6 from 153.8 in the previous period. The modest decline in this indicator indicates that the strength of the labor market is not enough to raise wages and personal financial expectations, an unfavorable development for future consumption, a key driver of the country’s economic growth.

Elsewhere, in Expectations medex bounce back and marked up to 77.2 of 76.7 a month ago, but the recovery was modest amid uncertainty about the business environment and personal finance, with the cost of living at its highest level in over 40 years and the war in Ukraine lasted for more than two months.

With sentiment in a weaker position, household spending is likely to stagnate in the near term, limiting economic growth in the second quarter, following already weak expansion in the first three months of the year. However, it is important to emphasize one thing: traders should not use consumer confidence results obtained from surveys exclusively as a proxy or to measure household spending, as soft data has become increasingly unreliable in recent years, especially after the COVID-19 outbreak.

US CONSUMER CONFIDENCE

Source: Conference Board

MARKET REACTION

Consumer confidence data was released this morning strengthened Wall Street’s negative tone, with the S&P 500 extending its decline and falling more than 1.3% after survey results went over the wire. Looking ahead, it’s important to keep an eye on the ongoing earnings seasonas a quarter numberand guidance can offer insights into the future amid growing concerns that The US economy is heading towards a tough landing in response to the Fed aggressive tightening cycle.Which states, traders should monitor corporate decisions from mega-caps Microsoft and Alphabet this afternoon after the bell closed. MSFT and GOOGL finance achievement and forward -looking reviews will be key for the technology sector and can set the tone for the broader market.

5 MINUTE CHART S&P 500

S&P 500 Extends Losses as April Consumer Confidence Exceeds Expectations

S&P 500 Charts Prepared Using TradingView

EDUCATIONAL TOOLS FOR TRADERS

  • Are you just starting out? Download starter guide for FX traders
  • Do you want to know more about your trading personality? Take it DailyFX Quiz and find out
  • IG customer position data provides valuable information on market sentiment. Get your free guide on how to use this powerful trading indicator here.

— Written by Diego Colman, Contributor

Agrasmartcity

Welcome to India's Largest news platform, I assure you that we daily update on Global news which helps you to grow your knowledge.

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button
AllEscortAllEscort