Stock rally stumbles as consumer confidence falls to 6-month low
U.S. stocks lost strength mid-morning Friday after consumer confidence hit a six-month low.
The Dow Jones Industrial Average (^DJI), eyeing its eighth straight win, held on for gains of around 0.2%, with the benchmark S&P 500 (^GSPC) hovering above the line flat after closing above 5,200 for the first time. in a month. The tech-heavy Nasdaq Composite (^IXIC) was down about 0.1%.
The latest University of Michigan consumer confidence survey released Friday found a 13% decline in overall confidence during the month of May. The index for the month came in at 67.4, its lowest level in six months, and well below economists’ expectations of 76.2.
The drop in confidence comes as investors debate the future of interest rate cuts, amid recent signs of a slowdown in the labor market.
Learn more: How does the labor market affect inflation?
Under these conditions, investors will listen closely to speeches from a large number of Fed speakers on Friday for more information on the timing, pace and chances of policy easing. Michelle Bowman, Neel Kashkari and Austan Goolsbee are among those expected to appear.
Earlier, Atlanta Fed boss Raphael Bostic said he was considering a one-time interest rate cut at the end of this year, but echoed the preference of his colleague Mary Daly of wait for a stronger signal that price pressures are easing.
On the corporate side, shares of TSMC (TSM) jumped after the Taiwanese contract chip manufacturing giant announced its sales jumped 60% in April. He attributes sustained demand for AI coupled with a revival in consumer electronics like smartphones.
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News Source : finance.yahoo.com
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