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Mortgage industry commentary warns stock market may not reflect the economy

Reported · Written up by our desk · Mortgages

Mortgage News Daily highlights a long-running caution that U.S. equity market performance can diverge from broader economic conditions, pointing readers to the saying that “the stock market is not the economy.”

The outlet also cites research by Elliot F. Eisenberg, Ph.D., saying U.S. equity gains are increasingly driven by the so-called Magnificent Seven and major tech firms, including the hyperscalers Amazon, Alphabet, Meta, Microsoft, plus Apple, Nvidia, and Tesla.

According to the cited analysis, those companies together have a combined market cap of almost $25 trillion, representing 77 percent of U.S. GDP, and the piece says year over year tech earnings per share growth for 26Q3 is expected to be 65 percent, about double the overall S&P 500.

Mortgage News Daily adds that while the market may be concentrated, the cited commentary describes the concentration as “staggeringly large and profitable,” in the context of broader economic uncertainty.

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