CB Consumer Confidence has declined due to concerns about an upcoming recession.

Main points:

• In September, CB Consumer Confidence dropped from 106.1 to 103, indicating a decline in consumer sentiment. 
• The Present Situation Index saw a slight increase from 146.7 to 147.1.
• The Expectations Index declined significantly from 83.3 to 73.7, suggesting reduced optimism about future economic conditions.

According to The Conference Board's CB Consumer Confidence report for September, consumer confidence declined from 106.1 in August to 103 in September, which was lower than the expected consensus of 105.5.

While the Present Situation Index showed a slight increase from 146.7 to 147.1, the Expectations Index experienced a significant decline from 83.3 to 73.7. The Conference Board highlighted that historically, an Expectations Index below 80 has often signaled a recession within the next year.

The Conference Board also noted that consumers remained concerned about rising prices, particularly for groceries and gasoline. The decline in consumer confidence was found across all age groups, with notable effects on consumers with household incomes of $50,000 or more.

Looking ahead, the FedWatch Tool indicates a 74.5% probability that the Federal Reserve will leave interest rates unchanged at the next meeting in November. Traders expect rates to remain unchanged until the year's end, although the likelihood of a rate hike in December is increasing.

Following the release of the report, the U.S. Dollar Index has been striving to settle above the 106.00 level. Worries regarding a potential government shutdown are lending support to the American currency.

In the gold market, prices are currently testing support levels at $1900 - $1910 as traders focus on the stronger dollar. Despite lower Treasury yields, gold markets are not receiving significant support.

As traders reacted to the disappointing CB Consumer Confidence report, the SP500 settled below the 4300 level. Recession concerns continue to exert pressure on major indices.