Consumer confidence plunged unexpectedly to its lowest in 16 years in May as rising gasoline costs and falling home prices made Americans nervous about the future, a survey released on Tuesday showed.
The Conference Board, an industry group, said its monthly measure of consumers' mood fell to 57.2 from 62.3 in April, well below Wall Street's median estimate of 60.0.
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"There is a fear the economy is in a recession or going into one and people may find their jobs in jeopardy," said David Coard, head of fixed-income sales and trading at The Williams Capital Group in New York.