Michigan Consumer Sentiment Drops To 71.1; SP500 Pulls Back From Session Highs

The University of Michigan commented: “Despite reporting stronger incomes this month, concerns about unemployment rose; about 47% of consumers expect unemployment to rise in the year ahead, the highest since the pandemic recession.”

Year-ahead inflation expectations increased from 2.8% in December to 3.3% in January, which is the highest reading since May 2024. Long-run inflation expectations grew from 3.0% to 3.2%.

Today, traders also had a chance to take a look at the Existing Home Sales report for December. The report showed that Existing Home Sales increased by 2.2% month-over-month, compared to analyst forecast of +0.3%.

U.S. Dollar Index remained under pressure as traders reacted to Consumer Sentiment data. Currently, U.S. Dollar Index is trying to settle below the 107.40 level.

Gold moved back above the $2780 level as traders focused on the Consumer Sentiment report. From a big picture point of view, gold is moving towards historic highs.

SP500 pulled back from session highs as traders reacted to economic data. Currently, SP500 attempts to settle back below the 6120 level.