Welcome to Extreme Investor Network, where we take a deep dive into the latest updates from the Stock Market, trading, and Wall Street. Today, we bring you insights into the recent economic conditions and consumer expectations that have been impacting the market.
In July, Current Economic Conditions saw a decrease from 65.9 to 64.1, while the Index of Consumer Expectations also declined from 69.6 to 67.2. This shift in consumer sentiment is crucial for investors to take note of as it can influence market trends.
Furthermore, year-ahead inflation expectations have decreased to 2.9%, with long-run inflation expectations also dropping from 3.0% to 2.9%. Despite these declines, inflation expectations remain elevated compared to pre-pandemic levels, indicating potential future market fluctuations.
The University of Michigan noted that consumers are feeling uncertainty about the economy as the upcoming election looms. However, there is little evidence that the recent presidential debate has altered their economic views.
Following the release of the weaker-than-expected Michigan Consumer Sentiment report, the U.S. Dollar Index tested new lows and is currently attempting to settle below the 104.10 level. This shift in the dollar’s value has also provided additional support to gold markets, with gold making strides to settle above the $2410 level.
In equity markets, the SP500 tested session highs above the 5620 level, with traders leveraging the recent pullback to increase their long positions. Additionally, Treasury yields are moving lower, which typically signals a bullish outlook for equity markets.
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