U.S. consumer confidence hits 12-year low amid economic uncertainty

U.S. consumer confidence has fallen to its lowest level since 2014, driven by rising costs for food, energy, and housing, alongside higher borrowing rates and concerns regarding job displacement. This decline in sentiment has led households to tighten budgets, prioritizing essential goods over discretionary spending and delaying major purchases such as homes.

Despite deteriorating fundamentals, some beaten-down consumer stocks are beginning to outperform. UBS equity traders note that while investors are reluctant to declare an outright market bottom, there is growing interest in select consumer names as bearish positioning becomes stretched. The performance of the S&P 500 Consumer Discretionary Index remains a key indicator, with its future direction likely depending on interest rate paths and energy prices.