Wall Street keeps partying while consumers sink into despair: WSJ

The piece highlights a striking disconnect: U.S. consumer sentiment is near historic lows while the stock market — led by the S&P 500 — continues to climb. The rise is attributed to investor enthusiasm around AI and growth prospects, keeping valuations elevated despite weak household confidence, high prices and soft employment. The article warns that if consumers pare spending, corporate revenues and profits could suffer, leaving richly valued equities vulnerable to a correction. Short-term market strength may persist, but the divergence increases downside risk to earnings and future returns if economic fundamentals worsen.