Index of Consumer Sentiment declined from 67.9 to 63.8.
Current Economic Conditions decreased from 71.1 to 70.6.
Index of Consumer Expectations pulled back from 65.8 to 59.3.
On October 27, the University of Michigan released the final reading of Michigan Consumer Sentiment report. The report indicated that Consumer Sentiment declined from 67.9 in September to 63.8 in October, compared to analyst consensus of 63.
Current Economic Conditions decreased from 71.1 in September to 70.6 in October, while Index of Consumer Expectations declined from 65.8 to 59.3.
The University of Michigan commented: “This decline was driven in large part by higher-income consumers and those with sizable stock holdings, consistent with recent weakness in equity markets […] Year-ahead inflation expectations rose from 3.2% last month to 4.2% this month, the highest reading since May 2023.”
U.S. Dollar Index tested session lows near 106.30 after the release of the Michigan Consumer Confidence report. Treasury yieds are mostly flat today, and some traders prefer to take profits off the table near multi-month highs.
Gold remains stuck near the $1985 level. Consumer Sentiment data did not have any impact on gold price dynamics as gold traders remained focused on the developments in the Middle East.
SP500 rebounded towards the 4150 level as traders reacted to the better-than-expected report. SP500 is trying to rebound after a strong sell-off, and it remains to be seen whether it will be able to gain sustainable momentum.
Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.