Stock Market Update: Consumer Confidence Drops, Fed Speakers Awaited
Concerns over Consumer Confidence and Fed Remarks
Investors saw the S&P 500 closing with a slight decline as U.S. consumer confidence hit its lowest point since November. This news comes just before further insights from Federal Reserve speakers and a crucial inflation report later in the week.
Market Performance at Closing Bell
By 4:00 PM ET, the S&P 500 fell 31 points, the dropped by 0.2%, and the decreased by 0.4%.
Consumer Sentiment Dips, Fueling Rate Cut Expectations
The latest data revealed a drop in consumer confidence to 104.7, the lowest level since November 2023. This decline raised expectations of a rate cut as early as June, as consumer sentiment often influences consumer spending, a key driver of economic growth.
Traders are now anticipating a 70% likelihood of a Fed easing cycle starting in June, up from 59% just a week ago.
These developments precede the upcoming inflation data release and scheduled speeches from various Fed officials, including Fed governor Christopher Waller and Chairman Jerome Powell.
Market Movers: NVIDIA, Tesla, and UPS
NVIDIA saw a 2.6% decline after nearing its previous record high. Meanwhile, Seagate Technology rose by 6% following an upgrade by Morgan Stanley.
Tesla’s stock increased by 3%, driven by plans to offer a free trial of its Full Self-Driving technology to U.S. customers.
On the downside, United Parcel Service (UPS) dropped by 8% despite a positive revenue forecast for 2026, attributed to cost-cutting initiatives.
Trump Media & Technology Group’s Debut and Krispy Kreme’s Expansion
Trump Media & Technology Group Corp surged by 16% in its stock market debut after merging with Digital World Acquisition. In other news, Krispy Kreme Inc soared by 39% after securing a deal to sell doughnuts at McDonald’s restaurants nationwide by the end of 2026.
With various market developments unfolding, investors remain vigilant for upcoming Fed statements and economic indicators.
