Market sentiment continues to fall for second consecutive week, shows AAII data

Market sentiment fell for the second consecutive week, according to a survey by the American Association of Individual Investors (AAII), as investors continue to assess economic data and the impact of Donald Trump's tariffs.

Bearish sentiment as per the weekly AAII investor sentiment survey [https://www.aaii.com/sentimentsurvey] rose to 46.2% for the week ending August 13, compared to 43.2% in the prior update. Bullish sentiment as per the survey fell to 29.9% this week, versus 34.9% last week. The historical average for bulls is 37.5%.

President Trump's reciprocal tariffs took effect at midnight on Thursday. He has reportedly also signed a last-minute executive order extending a pause on high U.S. tariffs on Chinese goods for 90 more days. Meanwhile, a new inflation report showing that wholesale costs rose more than expected last month left investors disappointed.

According to AAII, neutral sentiment, or expectations that stock prices will stay essentially unchanged over the next six months, also saw a sharp change during the week, with the figure standing at 24%, compared to 21.9% last week.

The survey has been conducted by the American Association of Individual Investors since 1987, in which it asks respondents for their thoughts on where the market is heading in the next six months.

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