America’s economic paradox: Both living costs and stock prices are rising; people fret, firms rejoice

US consumer confidence dips again

American consumer confidence slipped for another month in October, signaling persistent anxiety about rising prices, job security, and the ongoing federal government shutdown. The latest survey by the Conference Board revealed a renewed sense of caution among households, even as the nation’s financial markets continued to climb.

Market boom contrasts public worry

While Wall Street celebrated record highs and a wave of optimism ahead of a possible interest rate cut by the Federal Reserve, everyday Americans are growing more concerned about their economic future. Weaker confidence in the labour market and higher living costs have weighed on sentiment, with many households tightening their budgets despite falling inflation numbers earlier this year.

Analysts say the divide between financial markets and household reality has rarely been this wide. The stock market is booming largely because of investor enthusiasm surrounding artificial intelligence and strong quarterly results from major technology companies. Yet the benefits of that growth remain uneven.

The widening economic divide

The Conference Board’s data highlights what economists increasingly describe as a “K-shaped” economy—one in which wealthier Americans continue to profit from rising stock valuations while lower and middle-income families face stagnant wages and shrinking purchasing power. Those earning above 200,000 dollars annually have been the biggest beneficiaries of the soaring equity market, while others remain squeezed by rent, food, and healthcare costs.

The imbalance threatens to deepen social and financial divisions if the current momentum continues unchecked. As one analyst observed, there is a growing risk that the country’s much-celebrated AI-driven prosperity could “leave too many Americans behind.”

Uncertainty ahead

With political instability and policy delays likely to persist, economists warn that consumer sentiment could continue weakening into the next quarter, even if stock indices maintain their upward path.