The stock market rally pushing the S&P 500 to all-time highs lifted the personal financial outlook among investors to a new record, the July IBD/TIPP Poll finds. Yet rising financial stress, as stimulus fades and inflation percolates, is weighing on U.S. economic optimism.
The IBD/TIPP Economic Optimism Index, an early monthly read on consumer confidence, slipped 2.1 points to 54.3 in July, the lowest since February. Readings above the neutral 50 level reflect optimism.
U.S. Economy’s Covid Recovery
The Covid jobs recovery strengthened in June, and wages continued to jump as reopening sectors of the U.S. economy bid for scarce labor. Meanwhile, the S&P 500 and Nasdaq both rose to record highs through the June 30-July 2 polling period. Through Tuesday’s stock market action, the S&P 500 has climbed nearly 16% this year, the Nasdaq 14% and the Dow Jones 13%.
Yet other U.S. economic crosscurrents more than offset those…