The gulf between US stocks and Americans’ spirits keeps widening.
The Dow on Friday hit a record high — the same day consumer sentiment hit an all-time low. Beyond pressures from the Iran war, which stock markets have largely shrugged off, AI is a factor in the divergence.
Traders are all-in on AI, but Americans are fretting over its impact on jobs. “The stock market on the moon and households in increasing gloom are reflecting on the same thing,” an economist said: Reduced labor costs may be good for stocks but mean fewer jobs.
US President Donald Trump has heralded the stock gains, but the bond market could put pressure on the White House. Yields have risen, threatening to push borrowing costs higher.
