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Why the stock market is up even as the economy weakens
Yahoo Financeยท 2025-10-06 15:40
Market Overview - The stock market has experienced significant gains, with records being broken and Bitcoin surging, while gold has increased nearly 50% this year as investors move away from the USD [1] - The U.S. government shutdown has resulted in hundreds of thousands of federal employees not being paid, and new job and inflation data are currently unavailable [2] Economic Disparity - There are two distinct economies in the U.S.: one affecting most Americans, where financial struggles are prevalent, and another driven by the stock market, where capital continues to flow regardless of government operations [3][4] - The top 20% of earners account for over half of U.S. consumer spending, with most investable capital held by institutions and high-net-worth individuals who are less affected by economic downturns [5] Investment Dynamics - Wealth accumulation among the rich leads to increased investments in stocks, private markets, and venture capital, contributing to rising market indices despite struggles faced by the general population [6] - The ongoing government shutdown has created a data blackout, affecting the availability of key economic indicators, yet large financial institutions have developed their own data sources to mitigate this impact [7][8]