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Lance Roberts notes that U.S. consumer credit unexpectedly declined in May, marking the first monthly drop since November 2024. The decrease was driven by a contraction in revolving loans, such as credit card balances, which outweighed an increase in nonrevolving debt categories like auto and student loans.
Roberts suggests that while this data point might not warrant significant concern immediately, its importance may hinge on whether it indicates a larger trend.
Roberts has recently reported on notable market shifts. He covered a week where the S&P 500 fell 2.4% and the Nasdaq 100 dropped 4.6%, led by declines in technology stocks. Earlier in the year, he noted the S&P 500's gain of over 10 percent year to date despite persistently negative retail investor sentiment. The updates track changing investor behavior alongside credit and index performance.