Key facts
- Two in five Americans believe the stock market primarily benefits the top 1%.
- Nearly 40% of Americans do not know the economy and stock market are distinct.
- Two-thirds of Americans incorrectly equate a growing stock market with overall economic growth.
- The Dow Jones is up 9% and the Nasdaq Composite is up 12.5% year-to-date.
- Half of the stock market is owned by the wealthiest 1% of Americans.
- Inflation cooled to 3.5% in June, remaining above pre-war levels.
A recent Harris Poll, exclusively shared with The Guardian, reveals that two in five Americans believe the stock market primarily benefits the wealthiest 1%. The survey also indicated widespread misunderstanding of the relationship between the stock market and the broader economy, with nearly 40% unaware they are distinct and two-thirds incorrectly believing a rising stock market signifies overall economic growth.
Despite economic challenges such as the COVID-19 pandemic, high inflation, and geopolitical events, the stock market has demonstrated resilience. Economists have characterized this as a K-shaped economy, where wealth for higher-income Americans has grown significantly with the stock market, while wages for workers have lost purchasing power against rising prices.
Year-to-date, the Dow Jones Industrial Average has increased by 9%, and the tech-heavy Nasdaq Composite has risen by 12.5%. The AI rally is noted as a key driver of these gains. The concentration of wealth is stark, with the top 1% of Americans owning half of the stock market, while the bottom 50% owns only 1%.
Data from the Bureau of Labor Statistics showed a slight cooling of inflation to 3.5% in June, partly due to a ceasefire in Iran reducing energy prices, though inflation remains higher than pre-war levels. Nevertheless, half of Americans perceive the current stock market as weak or are unsure of its performance, with 60% holding similar views about the U.S. economy.
Economic uncertainty and the rise of online trading have prompted many young adults to invest earlier. While many adopt long-term strategies, some are engaging in riskier investments like cryptocurrencies and day-trading. Notably, a third of respondents, rising to 46% among millennials and 44% among Gen Z, suggested they would achieve higher financial returns through gambling than the current stock market.