Latest / Markets with Megan: A Quick Financial Markets Update / Markets Rally on Confidence Spike | S2 E047 | 05-27-25

Transcript

Markets Rally on Confidence Spike | S2 E047 | 05-27-25 · Markets with Megan: A Quick Financial Markets Update

• 0:00
  Megan Horneman: Oftentimes we get some economic data reports where you can find some negativity or even positivity under whether it's a great report or a disappointing report.
• 0:08
  Megan Horneman: But today we got this Consumer Confidence Report and there is not much that we can say negative about this.
• 0:13
  Megan Horneman: It is Tuesday, may the 27th, and this is Markets with Megan.
• 0:17
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• 0:20
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• 0:23
  Megan Horneman: But today we wanted to talk about that May Consumer Confidence Report that we got from the Conference Board and, wow, this was just great all around.
• 0:31
  Megan Horneman: If you look at the headline Consumer Confidence Reading, it saw the biggest month-over-month point jump since May of 2020, when we were coming out of COVID.
• 0:41
  Megan Horneman: We saw all the different incomes that are surveyed and all the different ages all see consumer confidence increase for the month.
• 0:47
  Megan Horneman: There's two different components, main components, to this report.
• 0:50
  Megan Horneman: It's confidence on the present situation and that jumped to basically a three-month high.
• 0:55
  Megan Horneman: The expectation component are how consumers are feeling about the future economic expectations.
• 1:02
  Megan Horneman: That saw the biggest month-over-month point jump since May of 2009.
• 1:07
  Megan Horneman: So you've got to go all the way back to the Great Recession to see a better reading for that.
• 1:10
  Megan Horneman: The inflation expectations for the next 12 months.
• 1:13
  Megan Horneman: That actually also dropped a bit from 7 to 6.5.
• 1:17
  Megan Horneman: Still high, but that's good that we're seeing it to climb.
• 1:20
  Megan Horneman: And then when you look at the income and this is how people are feeling about their income levels over the next six months if you look at the income differential so that's taking those expecting it to increase versus those expecting it to decrease it jumped the most since we've seen since September of 2020.
• 1:38
  Megan Horneman: All around, when consumers were surveyed, they're expecting to spend more money on vacations, homes, appliances and even autos.
• 1:46
  Megan Horneman: So we are seeing some relief in this report from the disappointing reports we've gotten in the past, and this is primarily because we've seen some kind of moderation in the trade rhetoric and we're actually starting to see some positive news come out of this.
• 1:59
  Megan Horneman: So consumers are feeling it.
• 2:01
  Megan Horneman: The only slight negative you could take out of this report was when you look at the indications on the labor market and consumers are not feeling as confident about the amount of jobs that are out there.
• 2:11
  Megan Horneman: But we consider jobs plentiful as those that are jobs hard to get.
• 2:15
  Megan Horneman: So again, this is a good report.
• 2:17
  Megan Horneman: The markets like it.
• 2:18
  Megan Horneman: They also like the fact that we're getting trade deals, but that's all we have today.
• 2:22
  Megan Horneman: There'll be plenty more information this week that we'll be back with and, if you haven't, if you want to see a history of our podcast, you can go to marketswithmegan.
• 2:32
  Megan Horneman: fm.
• 2:33
  Megan Horneman: Thank you.