America’s deepest inflation fears are starting to fade

From Yahoo Finance: 2025-06-14 06:30:00

Americans are more optimistic about inflation, with the University of Michigan consumer sentiment survey showing a decrease in pessimism. One-year inflation expectations dropped to 5.1%, while long-run expectations fell to 4.1%. Consumer sentiment index also rose to 60.5 in June from the previous month.

Investors and consumers are finding relief in the improved outlook, with the S&P 500 nearing all-time highs. Tariffs remain higher than expected, but not as high as feared in April. The Federal Reserve may cut interest rates later this year, though not as much as hoped.

Strategists are becoming more bullish on stocks, with a median S&P 500 target of 6,100. Despite market fluctuations, many firms have adjusted their outlooks. Both consumers and investors assess if things are improving, a key factor influencing market trends.

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