{"id":55972,"date":"2025-11-13T20:38:29","date_gmt":"2025-11-14T00:38:29","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/us-economy-faces-headwinds-as-consumer-strain-rises-and-markets-diverge\/55972\/"},"modified":"2025-11-13T20:38:29","modified_gmt":"2025-11-14T00:38:29","slug":"us-economy-faces-headwinds-as-consumer-strain-rises-and-markets-diverge","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-economy-faces-headwinds-as-consumer-strain-rises-and-markets-diverge\/55972\/","title":{"rendered":"US Economy Faces Headwinds as Consumer Strain Rises and Markets Diverge"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>US consumer sentiment has plummeted to its second-lowest level on record<\/strong>, signaling deep economic unease among Americans, with 68% now living paycheck to paycheck and 24.3% struggling to pay bills.<\/li>\n<li><strong>Record-high 401(k) hardship withdrawals<\/strong> and a <strong>14% record high in 90-day student loan delinquencies<\/strong> underscore significant financial distress for many households.<\/li>\n<li>The <strong>US housing market is undergoing significant shifts<\/strong>, with first-time homebuyers disappearing, the emergence of &quot;geriatric homebuyers,&quot; and national apartment rents experiencing their steepest October decline in over 15 years, dropping by <strong>-0.31% month-over-month<\/strong>.<\/li>\n<li><strong>Berkshire Hathaway (<a href=\"\/stock\/BRK.A\">BRK.A<\/a>, <a href=\"\/stock\/BRK.B\">BRK.B<\/a>) has been a net seller of stocks for 12 consecutive quarters<\/strong>, marking its longest streak on record, while US tech debt fears are rising with CDS spreads for major tech companies jumping to levels not seen since 2022.<\/li>\n<li>Globally, <strong>natural gas prices have hit their highest level since the invasion of Ukraine<\/strong>, and over half of wealthy entrepreneurs are considering moving abroad, indicating broader economic and geopolitical uncertainties.<\/li>\n<\/ul>\n<p>The American economy is exhibiting stark signs of divergence, with consumer sentiment nearing historic lows while market dynamics present a mixed picture of caution and volatility. The University of Michigan&#39;s consumer sentiment index recently fell to <strong>50.3 in November<\/strong>, marking the second-lowest level on record, just above the June 2022 low. This reflects widespread concern, with 68% of US consumers reportedly living paycheck to paycheck, a notable increase from approximately 60% two years ago, and nearly a quarter struggling to pay their bills.<\/p>\n<p>Adding to the consumer distress, <strong>401(k) hardship withdrawals have reached their highest level since record-keeping began<\/strong>, indicating that more Americans are tapping into their retirement savings to meet immediate financial needs. The US student loan crisis is also worsening, with serious 90-day delinquencies hitting a record <strong>14%<\/strong>. These figures collectively paint a picture of significant financial strain on Main Street.<\/p>\n<p>The housing market is undergoing a notable transformation. First-time homebuyers are reportedly disappearing, leading to what Business Insider terms the &quot;Age of the Geriatric Homebuyer.&quot; Concurrently, US rent prices are falling at a historic pace, with national apartment rents dropping <strong>-0.31% month-over-month in October<\/strong>, representing the steepest October decline in over 15 years. This trend is largely attributed to a surge in new multifamily construction outpacing demand.<\/p>\n<p>On the corporate and market front, a cautious stance is evident from major players. <strong>Berkshire Hathaway (<a href=\"\/stock\/BRK.A\">BRK.A<\/a>, <a href=\"\/stock\/BRK.B\">BRK.B<\/a>) has extended its streak as a net seller of stocks to 12 consecutive quarters<\/strong>, the longest on record, having liquidated approximately <strong>$184 billion in equities<\/strong> over the last three years and swelling its cash reserves to a record <strong>$381.7 billion<\/strong>. This prolonged selling suggests that Warren Buffett and his team see few attractively priced investment opportunities in the current market. Meanwhile, fears surrounding US tech debt are rising, with Credit Default Swap (CDS) spreads for tech giants like <strong>Amazon (<a href=\"\/stock\/AMZN\">AMZN<\/a>), Apple (<a href=\"\/stock\/AAPL\">AAPL<\/a>), Google (<a href=\"\/stock\/GOOGL\">GOOGL<\/a>), Microsoft (<a href=\"\/stock\/MSFT\">MSFT<\/a>), and Oracle (<a href=\"\/stock\/ORCL\">ORCL<\/a>) jumping to approximately 42 basis points<\/strong>, their highest since 2022 and double 2024 levels.<\/p>\n<p>The global economic landscape also presents challenges. Natural gas prices have surged to their highest level since the invasion of Ukraine. Furthermore, a report by HSBC indicates that <strong>over half of wealthy entrepreneurs are considering moving abroad<\/strong>, with 57% looking to emigrate and 59% diversifying their wealth internationally, reflecting a global shift in wealth flows amidst market volatility and geopolitical uncertainty. In the US, President Donald <a href=\"https:\/\/thestockmarketwatch.com\/live\/trump-stock-market\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Trump\">Trump<\/a> is reportedly preparing tariff exemptions in an effort to lower food prices, which have been a concern for American consumers.<\/p>\n<p>Labor markets are also showing signs of weakness, with <strong>small firms&#39; job openings falling to their lowest level since the 2020 crisis<\/strong>, potentially signaling a rise in US unemployment. In corporate labor news, <strong>Boeing (<a href=\"\/stock\/BA\">BA<\/a>) workers have voted to conclude the company\u2019s second-longest strike in its history<\/strong>, while <strong>Starbucks (<a href=\"\/stock\/SBUX\">SBUX<\/a>) union baristas have initiated a walkout<\/strong> coinciding with a busy holiday sales event, pushing for contract negotiations.<\/p>\n<p>In Asia, stocks have slumped, tracking Wall Street declines, with tech sectors particularly hit by valuation and China AI race concerns. The <strong>KOSPI plunged more than 2%<\/strong>, and the <strong>Nikkei 225 fell 2.0%<\/strong>. South Korea&#39;s finance minister has expressed concern over rising FX market uncertainty and plans talks with exporters and a pension fund to address the weakening won, with measures aimed at market stability expected. UBS, however, advises sticking with emerging-market stocks, especially in China and AI, citing attractive valuations and favorable macro catalysts.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways US consumer sentiment has plummeted to its second-lowest level on record, signaling deep economic unease among Americans, with 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