Consumer Sentiment Hits Six-Month Low, US Stocks Lose Steam
US stocks lost steam in mid-morning trading on Friday after consumer sentiment hit a six-month low, according to the latest University of Michigan consumer sentiment survey released on Friday. The index reading for the month of May came in at 67.4, its lowest level in six months, and well below economist expectations of 76.2. Investors are growing concerned about the future of interest rate cuts amidst signs of a cooling labor market.
Stocks Show Mixed Performance
The Dow Jones Industrial Average (^DJI), looking to extend its winning streak to eight straight days, clung to gains of roughly 0.2%. The benchmark S&P 500 (^GSPC) hovered above the flatline after closing above 5,200 for the first time in a month. Meanwhile, the tech-heavy Nasdaq Composite (^IXIC) declined around 0.1%.
Fed Speakers to Provide Insight
Investors will be closely listening to a lineup of Fed speakers scheduled to appear on Friday. Michelle Bowman, Neel Kashkari, and Austan Goolsbee are among those expected to provide more insight into the timing, pace, and likelihood of interest rate cuts.
Rate Cut Predictions Vary among Fed Officials
Atlanta Fed boss Raphael Bostic said he sees a single rate cut late this year, while fellow official Mary Daly is in favor of waiting for a more robust signal that inflation and price pressures are easing.
TSMC Reports Strong Sales Growth
Taiwan Semiconductor Manufacturing Company (TSM) shares soared after the chipmaking giant announced a 60% increase in April sales. Demand for AI-powered chips and a revival in consumer electronics drove the substantial sales gain.
Read more: How does the labor market affect inflation?
Overall, the stock market rally stumbled as consumer sentiment slid to a six-month low, leaving investors uncertain about the path forward in the face of a cooling labor market and the likelihood of interest rate cuts.
References
US stocks lost steam as consumer sentiment hit a six-month low
TSM shares up as sales jumped 60% in April
