Before the war with Iran, both investors and consumers were already facing significant uncertainty about the outlook for their finances and the broader U.S. economy. Investors were focused on several key issues, including the future path of Federal Reserve interest rates, the appointment of a new Federal Reserve Chair, rising inflation, and the potential effects of tariffs.
Consumers, meanwhile, had their own set of concerns. These included persistently high mortgage rates, a sluggish housing market, the rising cost of living, and worries about job security particularly considering increasing AI-related disruption. However, consumers are experiencing a greater level of anxiety than business owners. Listen to this UPdate recent sentiment reports for business owners and consumers and our forecasts for the stock market in 2026.