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Data released on Friday showed University of Michigan’s Consumer Sentiment Index fell to 59.1 in May from 65.2 in April, the lowest reading since 2011. According to analysts at Wells Fargo, there is no shortage of factors to blame for the decline in consumer sentiment, from inflation to rising interest rates and financial market instability.
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The S&P 500 has extended its gain to 2.2%. Even with that, this should be the sixth consecutive week of decline. That only underscores how far this bounce could go. What could limit it though is the bond market. US 10-year yields hit 3.20% after the CPI report before falling all the way to 2.80%
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“In times like now when uncertainty is high, central banks must conduct monetary policy by examining various data broadly without any preset idea,” said Bank of Japan (BOJ) Governor Haruhiko Kuroda during early Friday in Asia. Also read: BOJ’s Kuroda: The central bank must continue monetary easing to achieve its price target Additional quotes Japan’s economy
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