Dow’s Shocking Comeback Exposes Wall Street’s Dangerous Hubris
The Dow made a shocking comeback on Friday, and the sudden recovery exposed Wall Street’s false – and dangerous – sense of security. | Source: Shutterstock
By CCN: The Dow and broader U.S. stock market diverged on Friday, as investors weighed a myriad of macro risks against an apparent surge in consumer confidence. Those betting on a consumer-driven recovery may be in for a rude awakening amid record debt levels and the ongoing U.S.-China trade war.
Dow Reverses Brutal Drop
After a brutal pre-market for U.S. stock futures, the Dow Jones Industrial Average reversed losses on Friday to trade slightly higher. The blue-chip index was last up 0.1% at 25,928.57.
The broad S&P 500 Index of large-cap stocks also pared losses and was last down 0.1% at 2,873.44.
The technology-focused Nasdaq Composite Index fell 0.4% to 7,868.47.
Consumer Confidence Surges in May, but Not Everyone Buys It
U.S. consumer confidence surged to a new 15-year high in May, as Americans gave a glowing assessment of their prospects and reaffirmed their optimism about the Trump recovery.
The University of Michigan consumer sentiment index climbed to 102.4 in May from 97.2 in April. The reading was well beyond the 97.5 analysts had expected.
The gauge of future expectations surged to 96.0 from 87.4, which was also a 15-year high. The assessment of current economic conditions improved slightly.