US Consumer Sentiment Holds Steady In March, Inflation Expectations Remain Above Fed's 2% Target
Portfolio Pulse from Piero Cingari
The University of Michigan's consumer sentiment report for March showed a slight decrease in the overall sentiment index to 76.5, with inflation expectations remaining above the Fed's 2% target. Consumer sentiment has been stable since January 2024, with year-ahead inflation expectations at 3% and long-term expectations at 2.9%. The market reacted minimally to the report, with the SPDR S&P 500 ETF Trust (SPY) and the Invesco QQQ Trust (QQQ) both showing declines, while the Energy Select Sector SPDR Fund (XLE) saw an increase.
March 15, 2024 | 2:33 pm
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POSITIVE IMPACT
The Energy Select Sector SPDR Fund (XLE) was up 0.7%, outperforming other sectors and indicating a positive outlook for energy stocks.
XLE's increase amidst a generally cautious market reaction suggests a stronger confidence in the energy sector's outlook.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 80
NEGATIVE IMPACT
The Invesco QQQ Trust (QQQ) showed a similar downward trend as SPY, indicating a risk-averse sentiment among tech investors.
QQQ's decline mirrors SPY's, suggesting that the consumer sentiment report has also impacted tech investors' confidence.
CONFIDENCE 90
IMPORTANCE 65
RELEVANCE 80
NEGATIVE IMPACT
The SPDR S&P 500 ETF Trust (SPY) was down 1.1% following the consumer sentiment report, indicating a cautious market reaction.
The decline in SPY reflects a cautious response from investors to the consumer sentiment report and ongoing inflation concerns.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80