Consumer sentiment hits record low while margin debt soars to all-time high amid market gains

Consumer sentiment in the U.S. dropped to a historic low in May due to inflation and rising living costs, with the Michigan Consumer Sentiment Index falling to 44.8. Meanwhile, financial markets show strong risk appetite as margin debt surged 7% in April to a record $1.30 trillion, fueled by a 10.4% gain in the S&P 500. This divergence highlights economic stress for consumers despite bullish investor behavior. The S&P 500 continues its rally, nearing all-time highs, while markets expect the Federal Reserve to hold rates steady next month with a possible hike later in the year.