US consumers are becoming increasingly worried, which contrasts sharply with record highs for American indices, says Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.
Dow joins in the new highs
Stock markets have continued to drift higher, as we enter the final weeks of a very strong US earnings season. Signs of the rally broadening out beyond tech are the vital next step for the market to retain its bullish outlook, and Dow’s record high ticks that box nicely given tech’s lower weighting in the iconic index. A long weekend in for the NYSE and FTSE means we have some trimming of risk, but this month has hardly been filled with the ‘sell in May’ moves some might have expected.
US inflation expectations rise as rate hike bets firm up
US consumers continue to fret about price pressures, as flagged up in today’s Michigan data, while confidence continues to be hit hard as well. Markets are now expecting the Fed to move rates higher by the end of the year, and while this is perhaps a little premature, the evidence continues to point towards resurgent inflation over the summer.
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