Stocks Higher, Consumer Sentiment Lower 2/9/26

Summary

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Your Money Minute (CNBC)

Episode: Stocks Higher, Consumer Sentiment Lower 2/9/26
Host: Jessica Ettinger
Date: February 9, 2026

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Episode Overview

In this compact episode of “Your Money Minute,” Jessica Ettinger explores an apparent disconnect: while the U.S. stock market surges to record highs, consumer sentiment about the economy is at its lowest in over a decade. Through insights from CNBC’s Rick Santelli and former Kansas City Fed President Esther George, Ettinger highlights the impact of persistent inflation and how it’s souring Americans’ outlook despite solid financial indicators on Wall Street.

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Key Discussion Points & Insights

1. Consumer Confidence at a 12-Year Low

• Main Point: Americans feel the worst about their finances and the economy since 2014.

• Stat Highlighted: The latest Consumer Sentiment Index came in at 84.5—well below expectations (over 90).

  “Americans are feeling the worst about their finances and the economy in 12 years as consumer confidence has tanked.”
  — Jessica Ettinger [00:00]

  “Headline expected to be over 90 comes in at 84.5. That would be the weakest going all the way back to 2014.”
  — Rick Santelli [00:11]

2. Stock Market Hits Record Highs

• Despite flagging consumer sentiment, the S&P 500 (a benchmark of America’s largest companies) hit a record high at nearly the same moment the sentiment data was released.

• Key Stat: The S&P 500 gained over 1% in January 2026.

  “But almost at the exact same time as that came out, The S&P 500 index hit a record high... There’s a disconnect. The stock market’s been roaring, but American consumers are unhappy.”
  — Jessica Ettinger [00:20]

3. The Inflation Problem

• Americans remain frustrated by persistent inflation, running above the Federal Reserve’s 2% target for nearly five years.

• Recent measures:

  • CPI: 2.7% (December 2025)
  • PCE: 2.8% (December 2025)

• Inflation was nearly under control in spring 2025, but rose again after April’s tariff announcement.

  “We are going on now five years of inflation running well above the Fed’s target... High prices are a problem. People don’t like high prices.”
  — Esther George [00:45]

  “2% is the Fed's target for inflation, but inflation hit 2.7% in December in the CPI and 2.8% in December in the PCE. Different measures. Last spring, the US was close to getting inflation back down to 2%, but it’s been going up since the April tariff announcement.”
  — Jessica Ettinger [01:16]

4. Hiring Slowdown Driving Negative Sentiment

• Alongside inflation, the lack of robust hiring is compounding Americans’ pessimism, even as the broader economic indicators remain solid.

  “But when you combine that with the fact that you don’t see a lot of hiring going on, it does cause people to have sour sentiment even in the face of an economy you might otherwise say looks like it’s moving ahead in a pretty solid fashion.”
  — Esther George [00:45]

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Notable Quotes & Moments

• “There’s a disconnect. The stock market’s been roaring, but American consumers are unhappy.”
  — Jessica Ettinger [00:20]

• “High prices are a problem. People don’t like high prices.”
  — Esther George [00:45]

• “Hiring going on... does cause people to have sour sentiment even in the face of an economy you might otherwise say looks like it’s moving ahead in a pretty solid fashion.”
  — Esther George [00:45]

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Segment-by-Segment Breakdown

• 00:00 - 00:11: Introduction of consumer sentiment data and context
• 00:11 - 00:20: Rick Santelli presents the sentiment numbers
• 00:20 - 00:45: Contrast: Stock market’s highs vs. consumer disappointment
• 00:45 - 01:16: Esther George on long-running inflation and hiring concerns
• 01:16 - 01:45: Jessica Ettinger with inflation statistics, cause of rising inflation, wrap-up

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Takeaway

Americans are facing a paradox: strong stock performance but deep dissatisfaction fueled by inflation and limited job growth. Persistent price increases and hiring anxieties are outweighing positive market signals, underscoring the complex reality behind economic headlines.

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For more updates on the economy:
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Transcript

[Jessica Ettinger]

With a CNBC your Money minute. I'm Jessica Edinger. Americans are feeling the worst about their finances and the economy in 12 years as consumer confidence has tanked.

[Rick Santelli]

Headline expected to be over 90 comes in at 84.5. That would be the weakest going all the way back to 2014.

[Jessica Ettinger]

That's CNBC's Rick Santelli with the conference board's latest consumer sentiment data. But almost at the exact same time as that came out, The S&P 500 index hit a record high. That's basket of the biggest US Companies stocks. For January, the S and P gained a solid more than 1%. There's a disconnect. The stock market's been roaring, but American consumers are unhappy.

[Esther George]

We are going on now five years of inflation running well above the Fed's target. Former Kansas City Fed President Esther George on cnbc. We are getting very clear signals out of these sentiment surveys. High prices are a problem. People don't like high prices. But when you combine that with the fact that you don't see a lot of hiring going on, it does cause people to have sour sentiment even in the face of an economy you might otherwise say looks like it's moving ahead in a pretty solid fashion.

[Jessica Ettinger]

2% is the Fed's target for inflation, but inflation hit 2.7% in December in the CPI and 2.8% in December in the PCE. Different measures. Last spring, the US was close to getting inflation back down to 2%, but it's been going up since the April tariff announcement. You can keep up on the [e-mail] I'm Jessica Ettinger. CNBC.

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