U.S. Consumer Sentiment Falls to Second-Lowest on Record in October, Raising Market Concerns

U.S. consumer sentiment dropped to 46.3 in October 2026, marking its second-lowest reading on record. This decline coincides with the S&P 500's valuation reaching levels last observed around the dot-com crash, raising concerns for investors given that consumer spending constitutes two-thirds of the gross domestic product. Consumers anticipate inflation to reach 4.7% over the next year, an increase from 3.4% in February, partly due to disruptions in global oil supplies from the Iran war.