An increasing number of executives and economists point to a widening economic gap where the wealthy drive most activity, while low-income Americans struggle financially. A potential stock market downturn could affect wealthier households and trigger a broader economic slowdown, raising the risk of a recession.

High-income households are the “last pillars” of strength in the economy, with the top 20% of earners in the U.S. accounting for almost two-thirds of all spending. A stock market downturn could knock the wind out of them, potentially leading to a recession if cautious spending persists.

The U.S. economy could face a “big problem” if wealthy Americans become cautious in spending, according to economist Mark Zandi. The economy is largely powered by well-to-do households, with the top 3.3% of earners significantly driving economic growth through spending.

Growing concerns about an AI bubble and high tech stock valuations are raising worries about a potential stock market downturn. Wealthy households in the U.S., who hold the majority of market investments, could be significantly impacted by any market fluctuations.

Read more at Yahoo Finance: Moody’s Chief Economist Mark Zandi Warns Stock Market Downturn Could ‘Knock the Wind Out of’ the Wealthy and Trigger Recession