Kobeissi Graphic Shows S&P 500 Up 130% as US Consumer Sentiment Sinks 55%
Updated
Updated · Common Dreams · May 23
Kobeissi Graphic Shows S&P 500 Up 130% as US Consumer Sentiment Sinks 55%
3 articles · Updated · Common Dreams · May 23
A Kobeissi Letter chart posted Saturday highlighted a six-year split in which the S&P 500 climbed 130% while US consumer sentiment fell 55% to its lowest level since records began in 1952.
University of Michigan data released Friday showed sentiment at a record low, and Gallup said only 16% of Americans rate the economy as excellent or good while nearly half call it poor.
That disconnect is increasingly political: an AP poll cited by Axios found Republican approval of Donald Trump on the economy near 60%, down from 80% three months earlier.
Spending data point to a widening divide, with the top 10% of earners accounting for nearly half of US consumer spending while the bottom 80% make up less than 40%.
With the wealth gap at a historic peak, what could finally burst the stock market's optimistic bubble?
As Wall Street soars and sentiment sinks, are we heading toward a major social or economic crisis?
What fundamental changes could reverse America's decades-long trend of deepening wealth inequality?
Wall Street Soars, Main Street Suffers: Unprecedented Market-Sentiment Gap Hits U.S. in May 2026
Overview
In May 2026, the U.S. economy saw a striking disconnect: stock markets reached historic highs while consumer sentiment dropped to record lows. This unusual split was driven by soaring living costs and the ongoing Iran conflict, which pushed up gas and energy prices. Despite strong market gains and continued spending by wealthier households, most Americans felt squeezed by inflation and uncertain about the future. The report highlights how robust market performance can coexist with widespread pessimism, showing that economic growth and optimism are not shared equally across society during times of geopolitical and financial stress.