U.S. Consumer Confidence Hits Four-Year Low, Markets React

U.S. stocks are experiencing a rebound despite recent declines in consumer confidence, which hit a four-year low, as traders remain optimistic about potential Federal Reserve rate cuts. The S&P 500 is on track for its longest winning streak since February, even as economic indicators suggest increasing fears of recession and stagflation. Market sentiment has been notably affected by President Trump's tariffs, which are now expected to be less severe than initially anticipated, contributing to a recent rally in equities. Consumer confidence, measured by The Conference Board, has dropped significantly, reflecting growing pessimism about job prospects and inflation, although stocks rebounded quickly after the initial negative reaction to the data. Investors are also closely monitoring ongoing cease-fire negotiations between the U.S. and Russia regarding the war in Ukraine, which could impact market dynamics. Overall, the mixed economic signals have left market participants cautious yet hopeful for future growth.