Will Gas Prices Keep Americans From Spending?
Some investors may have been spooked by a new Harris poll published this week that found 84% of Americans plan to cut back on their spending in response to higher gasoline prices.
A drop in consumer spending could be bad news for the SPDR S&P 500 ETF Trust ( $SPDR S&P 500 ETF (SPY.US)$), but Bank of America economist Ethan Harris said Thursday that the poll results may not be as bad for the market as they seem at first glance.
Harris said there's no doubt soaring gas prices will have some negative impact on American consumers' spending, but a reopening economy will also drive upticks in spending in other areas of the market.
So far, rising prices at the pump haven't slowed down American consumers. However, the first-quarter earnings season should help investors get more clarity on just how much of an impact inflation is having on the economy. $S&P 500 Index (.SPX.US)$ $Invesco QQQ Trust (QQQ.US)$ $Occidental Petroleum (OXY.US)$ $W&T Offshore (WTI.US)$ $United States Oil Fund LP (USO.US)$ $Imperial Petroleum (IMPP.US)$
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
一株冲天 : spend more on gas to drive to the supermarket to buy food that has become more expensive and go back to a place that rental is going up.
old Micheal OP 一株冲天 : so bad![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
71326432 : Everything is going up not just the gasoline.
101640236 : The rich will spend while the poor has to spend because of inflation. But middle class get squeezed.