Michigan Consumer Sentiment Exceeds Expectations, SP500 Pulls Back From Session Highs

Key Insights

• Michigan Consumer Sentiment increased from 62 to 63.5.
• Industrial Production grew by 0.4% in March. 
• SP500 pulled back below the 4150 level as Treasury yields moved higher. 

Consumer Sentiment Rises In April

On April 14, U.S. released preliminary Michigan Consumer Sentiment report for April. The report indicated that Consumer Sentiment improved from 62 in March to 63.5 in April, compared to analyst consensus of 62.

The University of Michigan noted: “Rising sentiment for lower-income consumers was offset by declines among those with higher incomes. While consumers have noted the easing of inflation among durable goods and cars, they still expect high inflation to persist, at least in the short run.”

Today, traders also had a chance to take a look at the Industrial Production report for March. The report showed that Industrial Production increased by 0.4% month-over-month, compared to analyst consensus of +0.2%. On a year-over-year basis, Industrial Production grew by 0.5%.

SP500 Pulls Back From Session Highs

SP500 moved away from session highs after the release of Consumer Sentiment data. Traders focused on rising Treasury yields, which reacted to the better-than-expected Consumer Sentiment data.

U.S. Dollar Index tested session highs after the release of the report. It looks that the market was too bearish on the U.S. dollar in recent trading sessions, so a minor improvement in Consumer Sentiment served as a positive catalyst for the American currency.

Gold pulled back towards the $2015 level as traders took profits after the recent rally. Higher Treasury yields and stronger dollar put material pressure on gold markets in today’s trading session.

For a look at all of today’s economic events, check out our economic calendar.