The S&P 500 has reached an all-time high roughly 23 times in 2026, yet consumer sentiment is at an all-time low, creating an unprecedented gap between Wall Street and Main Street. Experts point to two main drivers: AI valuations and wealth inequality. NYU professor Scott Galloway noted that 40% of the S&P 500 is tied to AI companies, while Harvard professor Jason Furman found that 92% of GDP growth in the first half of 2025 came from AI-related infrastructure spending. Meanwhile, nearly 87% of stocks are owned by the wealthiest 10% of American families, leaving most households facing stagnant wages and affordability challenges. Galloway warned that overvalued AI stocks could trigger a recession, a view underscored by SpaceX losing nearly half its value while still trading at 80 times trailing revenue.
Space Exploration Technologies Corp. Class A Common StockSpaceX lost nearly half its value while trading at 80 times revenue, cited as overvalued.