and Mainstreet.
There is a disconnect between Wall Street and Main Street, where Wall Street (financial markets) has often outperformed Main Street (the real economy) due to factors like high corporate profits, strong investor sentiment in specific sectors, and wealth concentration, while Main Street consumers and small businesses struggle with inflation, stagnant wages, and job security concerns. This is evident in rising stock markets coinciding with rising costs for everyday essentials like groceries, rent, and energy.
Wall Street's performance
High corporate profits: Record corporate earnings have driven market gains, even as the number of small businesses and manufacturing jobs have declined.
Tech and AI growth: A surge in certain high-growth sectors, particularly technology and AI, has fueled investor optimism and pulled market indices higher.
Wealth concentration: A small percentage of the population holds a vast majority of the nation's stocks, meaning the benefits of a booming stock market are not shared broadly across the population.