Zacks Investment Management

This week’s question is one we’ve been hearing a lot lately: Why is the market doing so well when consumer sentiment is at historic lows?

Home sales to first-time buyers down 11%, inflation eases in April but tariff pressures loom, tariffs still high on small parcels from China even after de-escalation.

Hard data (unemployment, inflation etc.) is backward-looking. In this evolving, volatile market, investors must also consider soft data including consumer sentiment and PMIs.

Both the recent UK trade announcement and China tariff rollback signal progress in trade deals, but continuing uncertainty will impact market volatility and economic growth.

Overall GDP dropped -0.3% in Q1 but spending and business investment is still strong, company stockpiling drives trade deficit, China services sector weakens.