Summary

• Consumer confidence fell to 84.50 in January, a significant decline.
• This is the lowest consumer confidence reading in 11 years.
• The labor market is showing signs of cooling, with wage growth slowing and the unemployment rate ticking up.
• This data supports the Federal Reserve's potential for rate cuts this year.
• The likelihood of one to two rate cuts in 2024 is now factored into market expectations.
• Dow Industrials, S&P 500, and Nasdaq Composite are all showing slight gains.
• Russell 2000 is down slightly.
• The data suggests that the Fed may be able to achieve a "soft landing" or a less severe economic downturn.
• This could lead to a more dovish stance from the Fed, potentially increasing the odds of rate cuts.