Why stocks keep going up even as the economy softens [View all]
Unemployment is going up, with worker pessimism at its highest in years. Inflation is creeping higher. The U.S. deficit is climbing. Consumer sentiment is down. And many key issues facing the economy - such as the fate of President Donald Trump’s tariffs, and interest rate decisions by the Federal Reserve - are still up in the air.
Despite it all, the U.S. stock market has continued its climb. On Friday, the S&P 500 index closed up more than 12 percent on the year. It sits just shy of a record, having bounced back from the sharp April sell-off when Trump first announced severe tariffs, which were then partially rolled back.
The market’s success has progressed even as other economic fundamentals have softened.
“The stock market is filtering the economic data, and it sees good things going forward,” said Claudia Sahm, chief economist for New Century Advisors. “Households are seeing that same reality and coming down pretty pessimistic.”
https://finance.yahoo.com/news/why-stocks-keep-going-even-230812710.html
Meaning with more unemployed it'll keep wages down?
= new reply since forum marked as read