Investors are feeling gloomy as consumer sentiment has plummeted to its lowest since 2022, according to the University of Michigan’s Survey of Consumers. Wall Street is also in a similar mood, with both the Bank of America’s Global Fund Manager Survey and CNBC Fed Survey showing investors raising their recession probabilities.
The stock market resumed its sell-off on Tuesday, with the S&P 500 shedding 1.07%, the Dow Jones Industrial Average losing 0.62%, and the Nasdaq Composite falling 1.71%. Tesla shares slumped more than 5% after RBC Capital Markets lowered its price target on the stock.
Investor sentiment is also being impacted by surveys, with respondents to the March CNBC Fed Survey raising their recession probability to 36% from 23% in January and lowering their average GDP forecast for 2025. The Bank of America’s Global Fund Manager Survey showed a major pullback in overall investor sentiment since March 2020.
Other news includes Nvidia announcing new AI chips, Google acquiring Wiz for $32 billion, and the US Federal Reserve preparing to make a monetary policy decision that may not reassure investors further.
In other global news, Germany’s parliament has passed a historic debt reform package, paving the way for higher defense spending and an infrastructure and climate fund.
Source: https://www.cnbc.com/2025/03/19/cnbc-daily-open-the-mood-on-wall-street-is-grim-as-stocks-slide.html