Americans were feeling better about the economy and then war with Iran broke out

The University of Michigan reported that consumer sentiment was improving in late February but turned sour immediately after military action in Iran began. The sudden shift signals increased risk-off consumer behavior and a potential near-term drag on consumption and sentiment-sensitive assets.

Analysis

The University of Michigan reported that consumer sentiment was improving in late February but turned sour immediately after military action in Iran began. The sudden shift signals increased risk-off consumer behavior and a potential near-term drag on consumption and sentiment-sensitive assets.