Consumer confidence drags Wall Street down as inflation figures await
Wall Street ended sharply lower yesterday despite a green start to the session. Optimism at the start of the session, as Beijing and Shanghai recorded no new COVID infections for the first time since February, was undermined by a weaker-than-expected reading in U.S. consumer confidence.
Major indexes began to slide after the release of the Conference Board’s Consumer Confidence Index, which showed the confidence index falling to its lowest level (66.4) since March 2013 while expectations inflation rates for the coming year have risen to 8%, fueling fears of stagflation.
All sectors were battered except for energy, which managed to end in the green thanks to energy prices supported by the reopening of the Chinese economy and a Reuters report that the Saudi Arabia and the United Arab Emirates have limited spare capacity to increase production.
Investors’ attention will now shift to inflation figures for Spain and Germany this morning, as they preview inflation figures for France on Thursday and for the Eurozone on Friday. Traders will also be closely watching US PCE inflation figures on Thursday, followed by US household income and spending on Friday.
Speeches by central bankers Powell, Lagarde and Bailey this afternoon will be watched, but none of them are expected to announce anything new regarding their monetary policy.
S&P 500 daily price chart – key levels