The Dow Jones Industrial Average surged more than 800 points in a major comeback rally for stocks, coming off the lows of the bear market last week even as many on Wall Street maintain a gloomy outlook.
A final reading of a consumer sentiment report tracked by the Federal Reserve showed record lows going back to 1952. Still, stocks appeared to get a lift from a key figure in the report showing inflationary pressures easing slightly compared to a preliminary release.
More consumers appeared to be willing to pay for experiences compared to durable goods.
“On balance, sentiment is mixed,” wrote Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. “Consumers are getting out and paying for ‘experiences,’ namely travel, leisure, beauty items, household essentials, etc. Elevated inflation, particularly higher food and energy costs, are among headwinds widely expected to crimp discretionary spending in the near-term.”
