New York Stock Exchange Consumer Confidence Index Shock

New York Stock Exchange Consumer Confidence Index Shock

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Conference Board Consumer Confidence Index Breaks 80 Line Danger Line… Trump Tariff Bomb Backlash “Tesla, Nvidia, Palantir, Bitcoin Plummet”

New York Stock Exchange Consumer Confidence Index Shock

Shock to Consumer Confidence Index in New York Stock Exchange… Trump Tariff Bomb Backlash “Tesla, Nvidia, Palantir Plunge”

The New York Stock Exchange is shaking due to the shock to the consumer confidence index. As the consumer confidence index is shaking due to the backlash from Trump’s tariff bomb, Tesla, Nvidia, Palantir, etc. are plummeting. Virtual cryptocurrencies such as Bitcoin, Ethereum, and Ripple are also weak. It appears that President Donald Trump’s tariff bomb threat to US trading partners is also causing concern among domestic consumers. The Conference Board, an economic research organization, reported that the US consumer confidence index in February was 98.3 (based on 1985 = 100), down 7 points from January. This is significantly lower than the Dow Jones forecast for the New York Stock Exchange (102.3). It is the lowest since June of last year, and in particular, the decline is the largest on a monthly basis since August 2021.

The expectations index, which reflects consumers’ short-term outlook for the business and labor markets, fell 9.3 points from the previous month to 72.9. The Conference Board’s Consumer Confidence Index has broken below the danger line of 80. It has been eight months since June 2024 that the expectations index has fallen below the 80 mark, which is considered a recession risk signal. This means that consumers’ economic outlook has become more pessimistic. CNBC pointed out that the decline in the index was due to the impact of President Donald Trump’s tariff threat.

As the U.S. Federal Reserve (Fed) weighs whether to lower interest rates further or freeze them, concerns about tariffs triggering inflation have clearly increased. “American consumers were pessimistic about the future business situation and less optimistic about their future income,” said Stephanie Guichard, chief economist at the Conference Board. “It seems to be a result of a combination of factors, such as the surge in prices of essential items like eggs and the entrenched inflation.” The New York Stock Exchange in the United States opened with a sharp decline, shaken by new economic indicators showing that consumer confidence in the U.S. economy has fallen more sharply than expected. With the announcement of AI giant Nvidia’s earnings a day away, questions about the sustainability of AI investment have made the market vulnerable, and concerns about an economic downturn have further dampened investor sentiment.

The Volatility Index (VIX) compiled by the Chicago Board Options Exchange (Cboe) on the New York Stock Exchange rose 11.38% from the previous day to 21.14. The three major indices closed mixed the previous day. The Dow Jones Industrial Average barely managed to rebound after overcoming the selling storm of the previous two trading days, but the Nasdaq and S&P 500 indexes were unable to escape a three-session losing streak as tech stocks continued to sell off. The Dow Jones Industrial Average narrowed its gains and the S&P 500 and Nasdaq indexes widened their losses after President Donald Trump confirmed that he would proceed with the 25% tariffs on Canada and Mexico as soon as the ‘one-month grace period’ ends. The U.S. consumer confidence index weighed on the market.

According to the Conference Board (CB), the consumer confidence index in February was 98.3 (based on 100 in 1985), down 7 points from the previous month and significantly below the New York Stock Exchange market forecast (102.5). The US consumer confidence index has been declining for three consecutive months. The drop in the February figure is the largest since August 2021. The February expectations index recorded 72.9, down 9.3 points from the previous month, falling below the threshold (80) that signals an economic recession. Cryptocurrency prices are falling as risk asset preference is shrinking due to economic uncertainty in the US. Bitcoin is trading at $87,000 per coin, the lowest in three months. It is more than 20% lower than the highest price recorded a month ago. The US 10-year Treasury yield fell 11bp (1bp = 0.01%) from the previous day to 4.283%. This is the lowest level this year. Nvidia’s stock price, which will soon release its performance, fell more than 2%. There is keen interest in whether Nvidia can present a solid long-term outlook despite the emergence of China’s low-cost, high-efficiency AI DeepSeeker.

All stocks of the large technology group ‘Magnificent 7’ (M7) opened in the red due to the storm of selling off technology stocks. Tesla’s stock price plunged more than 7%, causing its market capitalization to collapse below $1 trillion. News that sales in the European market plunged 45% year-on-year added to the misfortune. AI server manufacturer Super Micro Computer’s stock price fell more than 8% on the day of the deadline for last year’s accounting report, which was extended. If Super Micro Computer fails to submit its accounting report by that day, it could be delisted from the Nasdaq Stock Exchange. ‘AI defense stock’, big data analysis software company Palantir’s stock price fell by more than 3%, exceeding minus (-) 29% for the past five trading days. It fell by nearly 40% from its all-time high ($125.41) recorded on the 19th.

The stock prices of related companies all slid due to the decline in Bitcoin prices. MicroStrategy, famous for holding the largest number of Bitcoins, fell by more than 10%, cryptocurrency exchange Coinbase fell by more than 6%, and Robinhood fell by more than 9%. European stock markets are rising in tandem. The pan-European index STOXX600 rose by 0.22%, the German DAX index rose by 0.05%, and the British FTSE index rose by 0.18%. International oil prices are falling. Tesla, an electric car company led by Elon Musk, saw its electric car sales in Europe drop significantly last month.

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