The stock market is not the economy, exhibit 3,443.62
The S&P 500 closed at another record high today at 3,443.62. The NASDAQ hit a record high, too. The Dow is well on its way.
But the pandemic keeps taking lives, new unemployment claims rose again and consumer confidence has taken a dive. If you listen to our show, you know we’re fond of saying, “The stock market is not the economy.” Because it isn’t: The wealthiest 10% of Americans now own 87% of stocks and mutual funds in the market.
So what is going on? Why are the stock market and the economy diverging so sharply? To find out, we called up New York Times markets reporter Matt Phillips. He’s been writing about the disconnect and how, for many Americans, the behavior of the market became a popular indicator of overall economic health.
Later, we’ll debate the fracas at Syracuse University and the pros and cons of an astroid hitting our planet. Plus, a bunch of listeners wrote in to tell us what the pandemic isn’t screwing up for them; we’ll share some of their answers.
When you’re done listening, tell your Echo device to “make me smart” for our daily explainers — this week we’re talking about the 19th Amendment, the NBA bubble and more. Finally, don’t forget to subscribe to our newsletter! You can find the latest issue here.
Here’s a list of everything we talked about today:
- “Repeat After Me: The Markets Are Not the Economy,” Phillips’ recent piece for the New York Times
- “‘This Market Is Nuts’: S&P 500 Hits Record, Defying Economic Devastation,” another one from Phillips
- “Is the stock market more important to the economy than the $600 unemployment benefit?” from MarketWatch
- “Rising stock market would be in the red without a handful of familiar names” from The Washington Post
- “A Love Letter to the Fed from the Adoring Stock Market.” in Bloomberg Businessweek
- “F.D.A. ‘Grossly Misrepresented’ Blood Plasma Data, Scientists Say” from The New York Times
- “White House Blocks FDA’s Power to Regulate Lab Tests” from U.S. News & World Report
- “American Airlines to Cut 19,000 Jobs by Oct. 1 When Federal Stimulus Ends” from The Wall Street Journal
- “Europe Tried to Limit Mass Layoffs, but the Cuts Are Coming Anyway” from The New York Times
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