Multiple polls and surveys released in recent days have shown US consumer sentiment crateringβand all the while, the US stock market keeps hitting record highs. The Kobeissi Letter, a financial newsletter, posted a graphic Saturday that matched consumer sentiment data with stock market performance, highlighting the growing divide.
According to the University of Michigan's Survey of Consumers, consumer sentiment fell to 67.4 in May 2026, down from 77.2 in April. Meanwhile, the S&P 500 index reached a new all-time high of 5,800 on May 22, 2026, driven by gains in technology stocks.
The graphic from The Kobeissi Letter shows that while the top 10% of US households own 89% of individually held stocks, the bottom 50% own just 1%. This disparity has widened since the pandemic, as stimulus measures boosted asset prices but left many lower-income households struggling with inflation.
Economists note that the disconnect between consumer sentiment and stock market performance reflects the uneven recovery. 'The wealth effect from rising stocks benefits a small slice of Americans,' said Mark Zandi, chief economist at Moody's Analytics. 'For most, high prices and borrowing costs are squeezing budgets.'
