Financial advisors' confidence in the economy and stock market dropped in July 2026, driven by growing concern over a near-term downturn, according to the Wealth Management Advisor Sentiment Index.

The index reading for overall economic confidence fell three points to 118 in July, while sentiment toward the stock market declined one point to 105. An index reading of 100 indicates neutral sentiment, with scores above 100 reflecting optimism and scores below 100 reflecting pessimism.

For the third consecutive month, advisors' view of the economy's six-month outlook deteriorated. Forty percent of advisors surveyed in July said they expect a decline over the next six months. Only 26 percent expect improvement, a 12-percentage-point drop from the previous month.

The shift represents a sharp reversal from May, when 55 percent of advisors held a positive view of the economy's short-term future.

Advisors also grew more cautious on near-term stock market performance. In June, 45 percent expected gains over the next six months. By July, only 29 percent held that view.

Views on the 12-month outlook are more divided. Forty-two percent of advisors expect the economy to decline over the next year, while 43 percent expect improvement and 14 percent see no change. On market returns, 41 percent hold a positive view for the year ahead, while 36 percent expect declines.

The Wealth Management Advisor Sentiment Index is a monthly survey of financial advisors. Data for the July 2026 report was collected from July 1 to July 30. Respondents are asked for their views on the economy and stock markets currently, in six months, and in one year. Responses are weighted and indexed to a neutral value of 100.

Methodology, data collection and analysis were conducted by Wealth Management and Informa Engage. The methodology conforms to accepted marketing research methods, practices and procedures, the publication said.