Federal Reserve Chair Jerome Powell stated the soaring stock market is currently supporting consumer spending and the economy. However, a market downturn could impact spending, especially for lower-income individuals. The US economy is described as “bifurcated,” with the wealthy driving spending while others struggle to keep up with inflation. Powell noted the stock market’s influence on spending varies based on wealth levels. Stocks have hit new highs in 2021, driven by Big Tech and AI hopes for profits.

Read more at Yahoo Finance: Stock market is helping support consumer spending now