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Consumer sentiment is plunging. Wall Street sees a tired US shopper as a major risk to stocks.


Published on 2025-03-25 14:41:18 - Insider
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  • The Conference Board's Consumer Confidence index hits its lowest level in four years this month. Forecasters see weaker spending hurting earnings this year.

The article from Business Insider discusses the current outlook for the stock market, focusing on consumer confidence and corporate earnings. It highlights that despite a strong start to 2024, with the S&P 500 reaching new highs, there are growing concerns about the sustainability of this growth. Consumer confidence has been wavering due to persistent inflation, high interest rates, and geopolitical tensions, which could impact spending and, consequently, corporate earnings. Analysts are divided, with some predicting a potential correction due to overvaluation in certain sectors, while others remain optimistic, citing robust economic indicators and expected earnings growth. The article also mentions that corporate earnings for the first quarter of 2024 have been mixed, with some companies beating expectations while others have fallen short, leading to increased market volatility. Looking towards 2025, the consensus seems to be cautious optimism, with expectations of moderate growth if economic conditions stabilize, but with significant risks if consumer sentiment continues to decline or if there are unexpected economic shocks.

Read the Full Insider Article at:
[ https://www.businessinsider.com/stock-market-outlook-consumer-confidence-corporate-earnings-outlook-risk-2025-3 ]