U.S. consumer confidence has declined to its lowest level since May 2020, marking the fifth consecutive monthly drop. In April 2025, the consumer confidence index fell to 86.0 points, reflecting broad-based weakness across all age groups. Expectations for the economy over the next six months reached their lowest point in more than a decade, dropping by 37.5 points to 54.4, the largest decline in 14 years. The share of Americans anticipating worse business conditions surged to levels not seen since the financial crisis, and recession expectations rose sharply, with 72% of consumers believing a recession is likely within the next 12 months, the highest in two years. Family financial outlooks also deteriorated to their lowest since the question was first asked in 2022. Institutional investors have adopted a bearish stance on U.S. equities, with hedge funds' long-to-short ratio at its lowest in nine years, indicating the most bearish positioning since 2016. Individual investors, while highly bearish on stocks with 49% expecting lower prices over the next year—the highest share in 14 years—have maintained a historically high stock allocation of about 67%. The S&P 500 index has declined approximately 5% year-to-date amid growing recession fears on Wall Street.