Stock market props U.S. economy despite stalled jobs and political uncertainty

The stock market is keeping the ￰0￱ afloat while jobs stay flat and politics add more ￰1￱ spending in August beat forecasts and incomes rose, even as many expected the country to already be near ￰2￱ and companies kept buying big ￰3￱ was ￰4￱ surprised with new home sales hitting a three-year ￰5￱ earlier years, this kind of momentum came from stimulus checks, low rates, and liquidity from the Federal Reserve. Today, it comes from Wall Street and the wealth effect of record-breaking ￰6￱ Zandi, chief economist at Moody’s Analytics, said Friday: “I do think that goes to the bounce in the stock market and the wealth effect. I think all of the spending is coming from the well-to-do high-income high-net-worth households that are seeing their stock portfolios are up and they’re feeling a lot better off and they’re spending.” The rally has been steady all ￰7￱ intelligence investment pushed demand, and industrial and communications giants added ￰8￱ Dow Jones Industrial Average has gained more than 9%.

The Nasdaq Composite is up 23%. Consumers often feel better when stocks rise and unemployment is ￰9￱ sentiment tracked by the University of Michigan is down 23% since January, when President Donald Trump returned to the White ￰10￱ mood divides as market climbs In September, the Michigan gauge fell another 5.3%. Joanne Hsu, director of the survey, explained, “Sentiment for consumers with larger stock holdings held steady in September, while for those with smaller or no holdings, sentiment decreased.” The market has hit repeated records this ￰11￱ from the ￰12￱ Fed show the top 10% of earners hold 87% of the entire ￰13￱ investors are secure, but it shows the ￰14￱ added: “The economy’s very vulnerable if the stock market does turn south, for whatever ￰15￱ start seeing red on their screens and not green on their screens and the savings rate goes up not ￰16￱ the current context of no job growth, that’s recession.” Valuation worries ￰17￱ reported the S&P 500 trades at 22.5 times expected earnings for the next ￰18￱ is above the five-year average of 19.9 and the 10-year average of ￰19￱ that, consumer spending in August rose 0.6%, Commerce Department figures showed ￰20￱ for inflation, spending increased 0.4%.

Inflation still runs above the Federal Reserve’s 2% ￰21￱ inflation is stuck at 2.9%. But monthly numbers match earlier forecasts, leaving the Fed on track for an October cut and maybe another in ￰22￱ speeds up while risks stay close Gross domestic product expanded at a 3.8% annualized pace in the second quarter, a revision that was half a point higher than ￰23￱ Atlanta Fed raised its estimate for the third quarter to 3.9%, 0.6 point more than last ￰24￱ goods orders ￰25￱ home sales jumped 20%. A spike in jobless claims earlier this month was only ￰26￱ stayed low, though payroll growth is ￰27￱ suggests stability, but it is still driven mostly by wealthy ￰28￱ Renter, senior economist at NerdWallet, said , “Often, when people feel pessimistic about the near-future economy, they begin reigning in spending, but that hasn’t been the case thus ￰29￱ fact, the strength of the consumer is credited with keeping the economy strong for the past handful of years, despite high inflation, high interest rates and great uncertainty.” She warned that the economy sits on a knife’s ￰30￱ groups of people are not sharing in the stock boom, and overall sentiment is at levels tied to past recessions.

“Wealth provides some insulation from perceived economic volatility, and investors have been largely doing OK,” Renter ￰31￱ added that, “Consumers are attuned to the current economic risks, inflation and labor market ￰32￱ could be due to first-hand experiences food prices rose significantly last month, or because they’re on edge from headlines tracking key economic ￰33￱ any case, people aren’t feeling great about the economy, their place within it or where it’s all headed.” If you're reading this, you’re already ￰34￱ there with our newsletter .