Wall Street Breakfast Consumer confidence sees biggest drop since 2021
Feb 25, 2025
Consumer sentiment is taking a hit, with confidence dropping significantly to levels not seen since 2021. Factors like inflation and job market instability are heavily influencing this downturn. Meanwhile, treasury yields are hitting yearly lows, reflecting market reactions. In industry news, Tesla's deliveries in Europe are facing a steep decline. Additionally, key developments include U.S. restrictions on Chinese chip production and the impending retirement of Lucasfilm's head.
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Consumer Confidence Plunges
- Consumer confidence saw its biggest drop since August 2021, falling to 98.3 in February.
- Multiple concerns like inflation, business conditions, and the labor market fueled the decline.
Mixed Signals in Consumer Sentiment
- Consumers' view of present business conditions improved, while their 12-month inflation expectations rose to 6%.
- Future expectations dropped to an eight-month low, signaling a potential recession.
Market Reaction to Consumer Confidence
- Declining consumer confidence impacted trading, causing stocks to fall and bonds to rally.
- The Nasdaq Composite and S&P 500 experienced losses, and the 10-year treasury yield decreased.