Investing Ideas

Could two of the market’s biggest red flags turn green?

Why lagging consumer confidence and manufacturing activity could rebound in 2026, and if that happens, what it could mean for stocks.

By: Brad Pineault

Updated: 2/11/2026

Key Takeaways

U.S. consumer confidence remains historically weak, but an important indicator could be nearing a turning point that could help rebuild sentiment and support future spending.
Similarly, manufacturing has continued to contract, although reduced tariff uncertainty, reconfigured supply chains, and expectations for higher revenue support potential improvement.
Better data for either consumer confidence or manufacturing could be a surprise development that may lead to targeted investment opportunities.

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Could two of the market's biggest red flags turn green?

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