US Consumer Sentiment Sharply Rebounds In December, Up 16.1% Year-Over Year; Inflation Expectations Decline
Portfolio Pulse from Piero Cingari
The University of Michigan's consumer sentiment survey for December 2023 showed a significant increase in consumer confidence and a decrease in inflation expectations. The consumer sentiment index rose to 69.4, a 13.2% increase from November and 16.1% year-over-year growth. Inflation expectations for the year ahead fell to 3.1%, the lowest since March 2021. U.S. stocks, including major ETFs, responded positively to the survey, with SPY, DIA, QQQ, and IWM all registering gains.
December 08, 2023 | 3:33 pm
News sentiment analysis
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POSITIVE IMPACT
SPDR Dow Jones Industrial Average ETF registered a 0.4% uptick after the consumer sentiment report.
The DIA ETF, which mirrors the Dow Jones Industrial Average, is expected to benefit from the improved consumer sentiment as it often reflects broader economic trends.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
iShares Russell 2000 ETF surged by 1.3% following the upbeat consumer sentiment report.
The IWM ETF, tracking small-cap stocks, is particularly sensitive to domestic economic indicators. The positive sentiment report suggests a bullish outlook for small-cap stocks.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Invesco QQQ Trust experienced a 0.5% rise in response to the consumer sentiment data.
The QQQ ETF, which includes many tech stocks, may see continued short-term gains as positive consumer sentiment can drive technology sector growth.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
SPDR S&P 500 ETF Trust saw a 0.5% increase following the positive consumer sentiment report.
The SPY ETF, which tracks the S&P 500, is likely to be positively impacted by the increase in consumer sentiment as it suggests potential for increased consumer spending and economic growth.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80