From an overall perspective, Michigan consumer sentiment is broadly stable for the third straight month.
Inflation expectations for the coming year rose from 2.9% in March to 3.2% in April, while long-term inflation expectations rose from 2.8% to 3.0%. . Rising inflation expectations could force the Fed to be more hawkish.
The University of Michigan commented: “Across the board, consumers continue to express uncertainty about the future trajectory of the economy as they await the results of the upcoming election, but at present there is no evidence that global geopolitical factors are at the forefront of consumer concerns. »
The US dollar index tested session highs as traders reacted to the consumer confidence report. Currently, the US Dollar Index is trying to settle above the 105.90 level. Treasury yields are falling, but the move puts no pressure on the U.S. currency.
Gold stabilized near the $2,340 level after an unsuccessful attempt to climb above $2,350. A stronger dollar has put some pressure on gold markets.
The SP500 tested new highs above the 5100 level after the release of consumer sentiment data. Growing demand for technology stocks is the main bullish catalyst for the SP500 in today’s trading session.
