Dow’s Shocking Comeback Falls Short, Exposing 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 finished lower 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 to trade slightly higher during the afternoon session. But the gains were short-lived as the blue-chip index settled down 98.68 points, or 0.4%, at 25,764,00
The broad S&P 500 Index of large-cap stocks finished down 0.6% at 2,859.53. Most of the 11 primary sectors finished lower, led by energy and industrials companies.
The technology-focused Nasdaq Composite Index plunged 1% to 7,816.28.
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.