Happy Sunday, and welcome to Benzinga’s financial advisor newsletter.

Today we're Americans’ personal finance. A new poll shows that 53% of Americans feel their financial situation is worsening — a record high since 2001. Concerns about inflation, job losses, and stock market volatility are fueling a wave of pessimism across income levels and political lines.

Plus, a look back at the last week of market activity.

INDUSTRY CHATTER

📉 Majority of Americans Say Their Finances Are Getting Worse, Survey Finds

A growing number of Americans are concerned about their personal finance situation.

In a new national survey, more than half of respondents — 53% — said their personal financial situation is getting worse, marking the highest level of financial pessimism recorded since the poll began more than two decades ago.

The findings highlight a deepening sense of economic unease. Only 38% of those surveyed said their financial situation is improving, down from 43% a year ago. The previous lows for this sentiment were during major economic downturns in 2008, 2020, and 2023, underscoring the weight of current anxieties.

While lower-income households were more likely to report worsening finances, the decline in optimism was felt across all income brackets. The survey also revealed notable partisan divides: a large majority of respondents from one political party reported declining financial conditions, while those aligned with the opposing party expressed a more optimistic view. These splits suggest that political outlooks continue to influence perceptions of economic well-being.

In addition to personal finances, expectations about the broader economy have taken a downturn. More than half of respondents now expect the stock market to decline, a reversal from earlier this year when optimism was stronger. Inflation is also top of mind, with a growing number of people believing that prices will continue to rise in the months ahead. Similarly, nearly half of respondents expect unemployment to increase, signaling broader concerns about job security and the strength of the labor market.

Economic Shifts

These shifts come amid recent economic and political developments that may be shaping consumer sentiment. From fluctuating markets to high-profile policy announcements, uncertainty appears to be weighing heavily on how Americans view both their current situations and the country’s financial future.

The surge in financial pessimism raises questions about spending habits, savings, and long-term planning. If these trends continue, they could have ripple effects on the broader economy — from slower consumer spending to reduced investment in housing, education, and other major life decisions.

For now, the survey paints a sobering picture: Americans are bracing for tougher times ahead, and confidence in both personal and national economic outlooks is on the decline.

MARKET RECAP

Wall Street Recovers, Dollar Steadies As Trump Tempers Trade Fight, Signals Support For Powell

Investor risk appetite rebounded over the week as the U.S. administration signaled a de-escalation in trade tensions with China. President Donald Trump also reassured markets that he has no intention of firing Federal Reserve Chair Jerome Powell.

Reports suggested China is considering suspending its 125% tariff on select U.S. imports, following indications that Washington may cut tariffs on Chinese goods. Trump hinted that negotiations with Beijing are ongoing, even as Chinese authorities denied any such talks were taking place.

The sell-off that had weighed on U.S. Treasuries and the dollar the previous weeks came to a halt, as investors found reassurance in the central bank's independence.

The S&P 500 has now recouped nearly 80% of the losses suffered since the post–April 2 "Liberation Day" downturn.

Yet, recent business and consumer surveys paint a less optimistic picture. U.S. private sector growth slowed in April to its weakest pace in 16 months, according to flash Purchasing Managers' Index data.

Business expectations for the year ahead have dropped to near-COVID-19 pandemic lows, while prices for goods and services rose at the fastest pace in over a year, particularly in manufacturing, where tariffs are playing a key role in driving costs higher.

Consumer sentiment also deteriorated sharply. The University of Michigan's gauge fell 8% this month, with expectations down 32% since January — the steepest three-month drop since the 1990 recession. One-year inflation expectations surged from 5% to 6.5%, the highest since 1981, while long-term inflation expectations rose from 4.1% to 4.4%.

Among individual stocks, ServiceNow Inc. led the S&P 500 with a 20% weekly gain on strong earnings and upbeat forward guidance. In contrast, Northrop Grumman Corp. fell 15% after cutting its 2025 outlook.

Tesla Inc. posted its biggest weekly rally since early November 2024, despite underwhelming earnings. Investors cheered Elon Musk's pledge to reduce his involvement in Dogecoin and refocus on leading the EV company.

Looking ahead, macroeconomic data and earnings will dominate the headlines next week.

Four members of the Magnificent Seven will report earnings next week, with Microsoft Corp. and Meta Platforms Inc. set for Wednesday, followed by Apple Inc. and Amazon on Thursday.

Thursday brings the release of the advance estimate for first-quarter GDP and the Fed's preferred inflation gauge for March, followed on Friday by the closely watched April jobs report, offering fresh clues on how tariffs are affecting the labor market.

THE WEEK AHEAD

Microsoft, Meta, Apple and Amazon report earnings, US initial jobless claims, consumer confidence, and more

Economic Data

• Monday: Canada federal election

• Tuesday: US consumer confidence and job openings

• Wednesday: US GDP, crude oil inventories and employment cost index

• Thursday: US initial jobless claims and manufacturing PMI

• Friday: US employment report and hourly wages

Earnings

• Monday: Waste Management (WM), Domino's Pizza (DPZ)

• Tuesday: Visa (V), Coca-Cola (KO), Pfizer (PFE), Spotify (SPOT)

• Wednesday: Microsoft (MSFT), Meta (META), QUALCOMM (QCOM)

• Thursday: Apple (AAPL), Amazon (AMZN), Eli Lilly (LLY), Mastercard (MA)

• Friday: Berkshire Hathaway (BRK), Exxon Mobil (XOM), Chevron (CVX)

Click here for the full calendar of economic data and earnings reports.

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