The US manufacturing sector showed signs of contraction in April, with the ISM Manufacturing Purchasing Managers' Index (PMI) registering 48.7, slightly above expectations but below the expansion threshold of 50. New orders and employment remained in contractionary territory at 47.2 and 46.5 respectively, while prices paid accelerated to 69.8. The Dallas Fed Manufacturing Index fell sharply by 19.5 points to -35.8, the lowest since the 2020 pandemic, with new orders dropping to -20.0. The Philadelphia Fed Manufacturing Business Outlook also declined significantly to -26.4, marking the second-lowest reading since 2020. Consumer sentiment deteriorated to its lowest level since the 2020 crisis, with confidence falling to 86.0 points and economic expectations plummeting by 37.5 points over six months to 54.4 points, the largest drop in 14 years. Job market pessimism surged, with 32% of Americans expecting fewer jobs in the next six months, the highest since the financial crisis. Investor sentiment remains bearish, with the American Association of Individual Investors (AAII) survey showing bearish sentiment above 59% for ten consecutive weeks, the highest in years, despite retail investors maintaining a historically high allocation of approximately 67% in stocks. The S&P 500 is down about 5% year-to-date amid growing concerns over a potential recession, exacerbated by ongoing trade tensions and global economic uncertainties.