From the Desk - Economic Commentary
Scott Hofer, Member Strategies Manager - 6/12/2026
U.S. stocks opened mixed this morning, showing some early hesitation across major indexes. The main driver was improving geopolitical sentiment, as investors reacted positively to signs of a potential U.S.–Iran peace deal, which pushed oil prices lower and eased inflation concerns. At the same time, strong momentum from the previous session, especially in technology and AI-related stocks, helped support the open. However, gains were tempered by sector rotation and weakness in some semiconductor names, along with broader caution about valuations and interest-rate expectations. Investors are also closely watching the high-profile SpaceX IPO, which added both optimism and uncertainty to early trading.
The University of Michigan’s preliminary June 2026 consumer sentiment index showed a modest improvement to about 48.9 from May’s 44.8, but confidence remains near historic lows. Consumer attitudes continue to be heavily weighed down by high prices, especially energy costs, leaving households pessimistic about their finances and the broader economic outlook. Inflation expectations remain elevated and are a key concern, with consumers increasingly worried that price pressures will persist beyond fuel into the broader economy. Despite the slight uptick, both current conditions and expectations remain weak, signaling subdued consumer demand and ongoing strain from the cost of living.
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