The stock market reflects expectations of future profitability of publicly traded companies, which is only loosely connected to how the average person experiences the economy, usually through prices, the availability of jobs, and wages.May 9, 2025
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Is the stock market indicative of the economy?
The economy represents how money is being made and spent by a country's citizens, companies, and governments. Economic growth is typically measured by gross domestic product (GDP). Stock market and economic performance are not always aligned. Strong stock market performance does not always signal a growing economy.