WASHINGTON, D.C. -- According to a July 3 post on Gallup.com, The Wells Fargo/Gallup Investor and Retirement Optimism Index -- an indicator of U.S. investors' outlook for the investing climate -- showed the largest quarterly drop in its history for the second quarter.

The index plunged a record 134 points in May, to +4, the lowest it has been in nearly seven years. This comes after registering a 20-year high of +138 in the first quarter of 2020.

Highlights of the report include:

Investor optimism dropped 84 points into negative territory (-31)

The personal dimension fell less steeply (49 points) and retains a positive value (+35).

The percentage of investors feeling very or somewhat optimistic fell on all four aspects of the economic dimension in the second quarter: unemployment (down 34 points), economic growth (down 26 points), the stock market and inflation (each down less than 20 point)s.

In the personal dimension of the index, investors' confidence in reaching their 12-month investment targets fell down 32 points), while there was almost no drop in confidence about reaching their five-year investment goals. Investors' confidence about maintaining or increasing their household income declined slightly (down 14 points).

Learn more about how the Wells Fargo/Gallup Investor and Retirement Optimism Index works.