Stocks Close Higher as Consumer Confidence Edges Up Ahead of Trump Address

U.S. stocks advanced Tuesday, with all three major indexes finishing solidly higher after fresh data showed a modest rebound in consumer confidence ahead of President Trump’s State of the Union address.

The Dow Jones Industrial Average rose 370.44 points, or 0.76%, to 49,174.5. The S&P 500 gained 52.32 points, or 0.77%, to 6,890.07. The Nasdaq Composite led the session, climbing 236.41 points, or 1.04%, to 22,863.7.

The move higher came as investors digested the latest Consumer Confidence Survey® from The Conference Board, which showed its headline index increased 2.2 points to 91.2 in February from an upwardly revised 89.0 in January . Despite the improvement, confidence remains well below its November 2024 peak of 112.8.

“Confidence ticked up in February after falling in January, as consumers’ pessimistic expectations for the future eased somewhat. Four of five components of the Index firmed. Nonetheless, the measure remained well below the four-year peak achieved in November 2024 (112.8),” said Dana M Peterson, Chief Economist, The Conference Board .

The rebound was driven primarily by expectations. The Expectations Index rose 4.8 points to 72.0, while the Present Situation Index declined 1.8 points to 120.0 . Consumers’ assessments of current business conditions weakened modestly, though labor-market perceptions improved slightly.

According to the survey, 28.0% of consumers said jobs were “plentiful,” up from 25.8% in January, while 20.6% said jobs were “hard to get,” compared with 19.0% a month earlier . Meanwhile, 19.7% described business conditions as “good,” versus 19.0% who said they were “bad” .

Inflation remains a central concern. “Consumers’ write-in responses on factors affecting the economy continued to skew towards pessimism. Comments about prices, inflation, and the cost of goods remained at the top of consumer’s minds. Mentions of trade and politics also increased in February. Labor market mentions eased a bit in February, while observations about immigration increased somewhat,” Peterson said .

With equities near record levels, investors are now focused on potential policy signals from the White House. Markets will be listening closely for commentary on trade, inflation and economic growth when President Trump addresses the nation Tuesday evening.