A recent surge in the S&P 500, with gains of 23 percent, has highlighted a disconnect between the day-to-day experience of households and the performance of their investments. This disconnect suggests that many individuals may not be seeing improvements in their own financial situations despite broader market trends.
The growing wealth gap and stagnant wages have led to declining purchasing power for middle-class Americans, making it difficult for them to benefit from the stock market’s growth. Meanwhile, institutional investors and high-net-worth individuals continue to accumulate wealth and reap the rewards of the rising market.
Source: https://www.washingtonpost.com/business/2024/12/31/stocks-indexes-sp500