US sentiment hits record low

The University of Michigan says April US consumer sentiment fell to a record low, with inflation fears and war anxiety driving the drop. That matters because when households feel this uneasy, they usually spend less on travel, home projects, electronics, and other optional buys.

Record-low sentiment is a warning sign for demand, but it does not mean spending stops overnight. It usually means households become choosier: they postpone trips, home projects, and other nice-to-have purchases, while leaning harder on essentials and discounts.

That is why consumer cyclical names are the clear pressure point here, while dollar stores, grocers, and other value-focused retailers can look relatively stronger. The next things to watch are whether this mood shows up in actual sales, bookings, and promotion levels; if it does, the hit moves from a survey headline to company earnings.

When households feel squeezed, they usually shift more of their spending toward basics like food, cleaning items, and other everyday necessities. That supports the consumer defensive sector as a whole because demand becomes steadier and more value-focused.

Walmart tends to benefit when shoppers get more cautious and trade down to cheaper groceries and essentials. That usually supports traffic and helps it take share from pricier stores.