US Consumer Sentiment Hits Second-Lowest Level as 66% Expect Higher Unemployment; Investors Cut US Equities; Bitcoin Near $87,000
Recent data indicate rising economic anxiety and bearish sentiment among US consumers and investors. The US consumer sentiment index dropped to 50.8, marking the second-lowest level in history and falling below levels seen during every recession in the past 50 years, including the Great Financial Crisis. Additionally, 66% of Americans expect higher unemployment over the next 12 months, the highest since the Great Financial Crisis. Professional investor sentiment also declined sharply, with the global investor sentiment index falling to 1.8 points in April, the lowest since October 2023 and among the five lowest readings on record. A Bank of America survey revealed that 50% of 164 investors managing $386 billion intend to reduce exposure to US equities, resulting in a net 36% underweight position—the largest two-month drop ever recorded. Investor pessimism about US corporate earnings reached levels not seen since November 2007, with a net 28% viewing the outlook as unfavorable. US consumers’ expectations for higher stock prices over the next year fell to a record low of 33.8%, matching levels seen during the 2022 bear market. Furthermore, a net 42% of global investors managing $386 billion anticipate a global recession, the highest since June 2023 and the fourth largest reading in over two decades. Indicators suggest that a recession may have already begun in the US, with the Philadelphia Fed Manufacturing Business Outlook plunging 39 points to -26.4, the second-lowest since 2020, and new orders dropping to -34.2, the lowest since April 2020. Meanwhile, the Crypto Fear & Greed Index fluctuated between 32 and 39 (Fear to Neutral) during this period, with Bitcoin prices rising modestly from around $84,000 to over $87,000. The overall market capitalization of cryptocurrencies reached approximately $2.88 trillion, with some tokens such as TAO, STX, FET, and FARTCOIN seeing gains exceeding 5%.
Written with ChatGPT (GPT-4).
Global Markets Investor
FinancialJuice
