Michigan Consumer Sentiment Drops To 58.6; SP500 Tests Session Lows

On August 15, 2025, the University of Michigan released Michigan Consumer Sentiment report. The report indicated that Consumer Sentiment decreased from 61.7 in July to 58.6 in August, compared to analyst consensus of 62.

Current Economic Conditions declined from 68.0 in July to 60.9 in August, while Index of Consumer Expectations decreased from 57.7 to 57.2.

Year-ahead inflation expectations increased from 4.5% in July to 4.9% in August while long-run inflation expectations grew from 3.4% to 3.9%. Rising inflation expectations may force the Fed to be more hawkish than previously expected.

The University of Michigan commented: “Overall, consumers are no longer bracing for the worst-case scenario for the economy feared in April when reciprocal tariffs were announced and then paused.”

U.S. Dollar Index tested new lows as traders reacted to Michigan Consumer Sentiment report. Currently, U.S. Dollar Index is trying to settle above the 97.75 level.

Gold settled near the $3340 level after the release of the weaker-than-expected report. U.S. dollar’s pullback did not provide material support to gold markets in today’s trading session.

SP500 made an attempt to settle below the 6450 level as traders focused on Consumer Sentiment data. Stock traders decided to take some profits off the table near historic highs.

For a look at all of today’s economic events, check out our economic calendar.