On May 30, the Conference Board released its Consumer Confidence report showing that CB Consumer Confidence decreased from 103.7 in April to 102.3 in May. Analysts expected CB Consumer Confidence to decrease to 99.
The Conference Board Commented: "Consumer confidence declined in May as consumers' view of current conditions became somewhat less optimistic while their expectations remained gloomy."
However, the better-than-expected report showed that consumer mood remained mostly stable despite debt ceiling sentiment. On a typical day, such data could push Treasury yields higher as healthy consumer activity gives the Fed an opportunity to raise rates to fight inflation.
However, things are different today as investors begin to react to the debt ceiling deal. Treasury yields fell as traders used the recent jump in yields as an opportunity to buy U.S. government bonds. at an attractive price.
The FedWatch tool shows that there is a 64.3% probability of a 25 basis point rate hike at the next Fed meeting in June. The US dollar index today is seen to be flat and slightly declining. The CB Consumer Confidence Report had no material impact on SP500 dynamics.
