Final answer:
The Consumer Confidence Index is released monthly and has strong impacts on the economy. Negative reports can lead to unfavorable market reactions, while positive reports can boost market confidence.
Step-by-step explanation:
The Conference Board's Consumer Confidence Index is released monthly. This index is a critical economic indicator watched by financial analysts, economists, and investors, as it provides insights into consumer sentiment and spending behaviors, which can have significant effects on the economy. When consumer confidence is high, individuals are more likely to spend money, bolstering economic activity, while low consumer confidence can lead to reduced spending and economic contraction.
A negative report on the Consumer Confidence Index and the home price index can lead to a negative reaction in financial markets, causing stock prices to drop and interest rates to potentially rise. Conversely, a positive report on these indexes can boost market confidence, leading to increased stock prices and more favorable lending conditions.