#USConsumerConfidence What is the consumer confidence index and how does it affect the stock market?

Imagine that the consumer confidence index is like a thermometer that measures the mood of buyers.

When this "thermometer" is reading high, it means that people feel optimistic about the economy and are willing to spend more money.

This, in turn, usually leads to companies earning more and their stocks rising in the stock market.

On the contrary, when consumer confidence is low, investors tend to be more cautious and stocks may decline.