From Yahoo Finance: 2025-05-16 20:45:00

Americans feel pessimistic about the economy despite positive hard data. Stock market vibes suggest a strong year for equities. Consumer sentiment dropped unexpectedly, but inflation remained cool in April. The job market is steady, with a low unemployment rate. Bank of America notes the widest gap ever between soft and hard economic data.

Wall Street is optimistic, with the S&P 500 up 5% for the week. Bank of America sees soft data panic as a potential positive for stocks. Other banks are bullish on stocks due to positive economic data and optimism around a US-China trade deal. Goldman Sachs raised its stock forecast, while Barclays removed a recession from its base-case forecast.

Read more: There’s a big disconnect between US economic vibes and what the data actually says