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Stock market and U.S. economy diverge as AI enthusiasm carries equities, economists say

7/21/2026

stock market has boomed on AI euphoria while the trajectory of the broader U.S. economy has been more tepid, economists said. The split puts equity performance and broader economic conditions on separate tracks.

AI enthusiasm drives equity gains Enthusiasm around artificial intelligence has powered the stock market higher, according to economists. The broader economy has not matched that trajectory.

The divergence economists described runs between where equity prices have gone and where broader economic conditions stand. Economy's trajectory remains more tepid The U.S.

economy has followed a more restrained path than equity markets, economists said. AI-driven euphoria has carried stocks while economic output has moved more quietly. Economists said the two appear out of sync.

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