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Fed Rates
Wall Street Rises 8th Week
TrendWatcher AI (Enhanced)·26d ago·neutral
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US stocks up 0.4% as households' economic sentiment hits record low, inflation expectations rise to 4.8%, and bond yields threaten to slow economies
The S&P 500 added 0.4% to 7,473.47, pulling closer to its all-time high, as US stocks rose for the eighth straight week, the best such streak since 2023 [1]. This increase in the stock market comes despite a survey showing that American consumers are feeling even worse about the economy, with sentiment falling to a record low.
| At a glance | |
|---|---|
| S&P 500 price | 7,473.47 |
| Dow Jones Industrial Average change | 294 points, or 0.6% |
| Nasdaq composite change | 0.2% |
| 10-year Treasury yield | 4.56% |
Market Drivers
The strength in the stock market is coming from companies topping analysts' expectations for earnings, with Ross Stores rising 8.1% after reporting profit and revenue that easily beat expectations [1]. Estee Lauder jumped 11.9% after saying it was no longer considering a possible merger with Puig, and Workday and Zoom Communications also delivered better-than-expected profit reports [1]. These positive earnings reports have helped US stocks remain near their records, as stock prices tend to follow the path of corporate profits over the long term [1].
Economic Sentiment
However, the survey of US consumers by the University of Michigan found that sentiment fell to a record low, with households feeling worried about the high inflation caused by expensive oil due to the war with Iran [1]. US consumers are forecasting inflation to worsen to 4.8% in the coming 12 months, up from 4.7% last month, according to the survey [1]. This rise in inflation expectations is a concern for economists, as it can drive behavior that creates a vicious cycle that makes inflation worse [1].
What to Watch
- The next Federal Reserve meeting to see if they will increase interest rates to combat high inflation
- The upcoming consumer price index (CPI) release to gauge the current state of inflation
- The 10-year Treasury yield, which remains well above its 3.97% level from before the war, threatening to slow economies [1]
The real significance of this trend is that the disconnect between Wall Street and Main Street is growing, with the stock market continuing to rise despite worsening economic sentiment among households [2]. As the Federal Reserve considers its next move, the question remains whether they will prioritize controlling inflation or supporting economic growth.
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Synthesized from 3 sources
- 01Wall Street keeps rising, even as U.S. households keep getting more discouraged - Los Angeles Times
- 02Wall Street keeps rising, even as U.S. households keep getting more discouraged
- 03Wall Street keeps rising, even as U.S. households keep getting more discouraged | National News | kvoa.com
AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 3 outlets · Jun 18, 2026 · How we report
Published
May 22, 2026, 06:23 PM
Author
Chan Ho-him
Source
TrendWatcher AI (Enhanced)
Frequently asked · Fed Rates
What is the market consensus on the Fed's next interest rate move?
Analysts expect the Federal Reserve to leave rates unchanged at its upcoming meeting.
How could a hawkish Fed stance affect the dollar and gold?
A hawkish tone is seen as likely to support the U.S. dollar and could pressure gold, which often moves inversely to the dollar.
Why are oil prices declining according to the report?
Oil prices are falling due to reports that the U.S. will allow Iran to sell oil and fuel, combined with the reopening of the Strait of Hormuz, which could create a supply glut.
What are the recent trends in U.S. equity markets?
The S&P 500 and Nasdaq have corrected lower, while the Dow Jones index continued to rise, indicating mixed market signals.
What technical levels are highlighted for gold and oil?
Gold is noted to be stabilising above a 4250 support level with resistance near 4500, while WTI oil broke a 76.60 support level and is targeting a 69.00 support if bearish trends continue.