Money is getting cheaper to borrow, credit is flowing more freely, and Wall Street’s stress levels are dropping. The US Financial Conditions Index hit -1.75 as of June 5, 2026, its lowest reading in over two and a half years, according to data highlighted by The Kobeissi Letter.
What the numbers actually mean
The Financial Conditions Index, likely sourced from Goldman Sachs, aggregates a range of metrics including credit spreads, borrowing costs, and broader market financing conditions into a single number. Lower readings mean easier conditions. Higher readings mean tighter ones.
At -1.75, the index has dropped 0.80 points since March 2026. That’s a meaningful shift over roughly three months, suggesting that whatever stress the market was pricing in earlier this year has substantially unwound.
The inflation wrinkle
