The U.S. stock market took a hit on Tuesday as a new report highlighted growing pessimism about the economy. The S&P 500 fell 0.5%, and the Nasdaq composite sank 1.4%. The Dow Jones Industrial Average added 159 points, or 0.4%.
A report from The Conference Board showed a significant drop in consumer confidence. The pessimism affected both higher—and lower-income households, as well as younger and older consumers. Despite these concerns, the market is trying to rebound to record highs.
The White House commented that the drop in confidence reflects the lingering effects of the previous administration.
Consumer confidence impacts market performance
They pointed to recent investment announcements by Apple and improved CEO confidence as positive economic indicators.
Consumer spending has been a key factor keeping the U.S. economy afloat. The report echoed similar findings from the University of Michigan, where consumers consider the current economic situation as acceptable but hold concerns for the future. High-momentum sectors were particularly affected.
Nvidia fell 2.8%, and Tesla tumbled 8.4%, becoming the two heaviest weights on the S&P 500. Bitcoin also experienced a drop, impacting companies in the crypto industry. MicroStrategy, which has been heavily involved in buying Bitcoin, saw its stocks fall 11.4%, while Zoom Communications dropped 8.5%.
The Wall Street downturn reflects heightened consumer pessimism about inflation and tariffs, casting a shadow over the economic outlook.
Image Credits: Photo by RDNE Stock project on Pexels
