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Stock market gains may look disconnected from the economy
CNBC World reports that investors have been focused on a sharp run in equities driven by AI optimism, even as economists say the underlying U.S. economic picture has been more uneven.
Economists cited in the piece argue that market performance can diverge from near term economic momentum when expectations about future growth, productivity, and corporate earnings shift faster than labor and other real economy indicators.
The story frames the apparent gap as a matter of timing and expectations, with stock prices reacting to forward assumptions while broader economic activity can lag or move in a different direction.