Consumer Sentiment Hits All-Time Low While Stock Market Reaches Record Highs, Federal Reserve Data Shows Wealth Disparity

Americans are experiencing a rare divergence where consumer sentiment has reached an all-time low, with the University of Michigan's index below 60 for over a year, even as the Nasdaq climbed to record highs. Federal Reserve data indicates that nearly all of the stock market's gains have benefited the richest 10% of households. Household holdings of stocks and mutual funds increased by $14.1 trillion between mid-2025 and mid-2026, with the top 1% receiving $7.4 trillion and the bottom half gaining only $90 billion.