Analysis: US Consumer Confidence in Stock Market Hits Record Low, Safe-Haven Sentiment Rises

Jinse reports, according to analysis by The Kobeissi Letter, the latest survey from the University of Michigan shows that American consumers' pessimism towards the stock market has reached a historic high. A record 12% of Americans believe there is no possibility of the stock market rising in the next 12 months, a figure that has tripled in the past two months and has surpassed the peak levels during the market bottoms of 2022, 2009, and 2020. Meanwhile, 44.5% of consumers expect the stock market to decline in the coming year, marking the highest level since 2022 and the second-highest in 14 years. Market sentiment is unusually in an extremely pessimistic state. Analysts point out that the sharp decline in consumer confidence is related to concerns about economic recession, inflation pressures, and unstable trade relations. This pessimism may lead investors to withdraw from the stock market, reduce market liquidity, shift funds to defensive sectors, or hold cash, further exacerbating market volatility.