US stocks encountered another incentive to proceed with caution ahead of next week's US inflation report. Compounding the wary sentiment, investors grappled with a sobering reality: a notable decline in US consumer sentiment amid escalating inflation expectations, spotlighted by the latest Michigan Consumer Sentiment Index. The preliminary reading from the University of Michigan sentiment index showed a sharp decline, with consumer sentiment dropping to a concerning 67.4.
These data releases will also offer valuable insights into the current inflationary environment, which will play a crucial role in shaping expectations regarding Federal Reserve rate cuts and longer-term interest rates for the remainder of the year Not to be outdone, April retail sales and industrial production figures will provide crucial indicators of consumer and industrial activity, shedding light on the strength of the economic landscape and the resilience of various sectors in the face of...