Trump vows to investigate EU over fining of US tech companies
The US president says fines against Google, as well as Apple, Meta and Amazon, should be "entirely reversed."
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The US president says fines against Google, as well as Apple, Meta and Amazon, should be "entirely reversed."
The government wants to relax wedding laws so couples can get married almost anywhere.
As ADHD diagnoses have risen, have workplaces caught up with the needs of the workforce?
Competition from ultra-cheap Chinese retailers and the cost of living crisis could be putting some people off shopping at the store, analysts say.
Agents say some renters wrongly believe permission to have a pet is guaranteed.
The BBC's Samira Hussain explains how President Trump's tariffs affect US economy, who pays the price, and whether they're working.
While the US tariffs imposed on the UK are effectively unchanged, other countries now have a better deal.
The US president says fines against Google, as well as Apple, Meta and Amazon, should be "entirely reversed."
The government wants to relax wedding laws so couples can get married almost anywhere.
As ADHD diagnoses have risen, have workplaces caught up with the needs of the workforce?
The price of Brent crude rose more than 6% on Thursday as the war in the Middle East continues to escalate.
Renewed tensions in the Middle East feed through to the costs faced by lenders, pushing up borrowing costs.
Hannah and Max continued to pool finances after Max was made redundant but took "drastic measures" to cut spending.
The threat of attack has never been higher, the boss of Europe's biggest defence contractor has warned. Dr Charles Woodburn
Imposed citing forced labour concerns, the levies replace a temporary global duty brought in after the US Supreme Court struck down tariffs in February.
June's fall in inflation will be welcomed by the new prime minister but analysts warn the fall is temporary.
Why is it taking so long for the government to regulate them, and what are the consequences of delay?
The company said earlier this year it expected to spend as much as $190bn on AI investments.
The cost of parking closest to the terminal has hit £10 at two of the UK's airports.
A co-founder of start-up Hugging Face told the BBC that most firms are not aware that the "game has changed".
A select committee says it has heard "overwhelming evidence" that rising employment costs are reducing training and job vacancies.
The Tokyo Metropolitan Government wants workers to ditch the suit and tie for t-shirts, trainers - and shorts.
As Andy Burnham promises “breathing space” for households, millions are unable to buy items such as clothing, heating and food.
Artificial Intelligence companies make vast claims about their tools replacing human labour - our charts show what's happening.
The government says the policy will "help with the cost of living and give people the breathing space they need"
The former defence secretary is seen as a safe pair of hands - and is now in charge of the government's finances.
The duties mark a major escalation in trade tensions between the North American neighbours.
Buying on social media livestreams is fast becoming regular consumer behaviour for many.
Public finances for last month were better than expected but the UK is carrying major debt.
Homes will save around £45 a year through the cut announced on Andy Burnham's first full day as prime minister.
Jingye said it will take action "through legal means to the very end" after the UK government nationalised British Steel.
Ryanair has also warned passengers travelling to Europe this summer to prepare for extended waits.
Ravika is one of hundreds of women who are noticing early pregnancy signs through the data on their fitness trackers.
The BBC understands creditors would would pursue payment in full of the outstanding debts, in the multi-billions of pounds.
Thousands of new parents fail to claim child benefit until it is too late to receive some of the money, HMRC says.
The UK data watchdog has received complaints after James Watt reportedly contacted former shareholders.
Economics editor Faisal Islam examines whether the north-west city can be a template for the entire country.
More than three million people in the UK work night shifts, which can greatly impact their health. What can be done to help them?
It's a small but growing problem in the property market - here's how to protect yourself.
Ryanair has also warned passengers travelling to Europe this summer to prepare for extended waits.
The UK government said taking the firm into public hands would safeguard "a vital national capability".
The company has unveiled a massive new artificial intelligence model it says can take on top American firms.
The UK data watchdog has received complaints after James Watt reportedly contacted former shareholders.
From defence spending to housing - the next UK leader has a series of challenges to deal with.
Economics editor Faisal Islam examines whether the north-west city can be a template for the entire country.
Trump Media is launching a fast, paid feed to its most influential posts for Wall Street traders.
Sarah and her husband have shared one account for 25 years, but she says managing it falls to her.
Big bucks are being made from the 2026 tournament off the field, but who is raking in the most?
The UK government said taking the firm into public hands would safeguard "a vital national capability".
Economics editor Faisal Islam examines whether the north-west city can be a template for the entire country.
The billionaire investor's firm has stopped giving donations to the Microsoft co-founder's charity.
Share trading in Elon Musk’s rocket company has been volatile since it went public a month ago.
The chief executive of Wild reveals what happens behind the scenes of social media posts.
The modest growth reverses a slight contraction that had been seen the previous month.
The Scunthorpe steelworks has been officially nationalised under new government powers passed this week.
Other US fast food brands have struggled to succeed in the countries their dishes originated.
The state, where the both studios have headquarters, has joined 11 others to halt the deal.
Collecting money for a joint present might overcome the competitive gift-giving, but it can still cause friction.
Simon Andriesz made the discovery about Howard Lutnick in publicly released Epstein files.
Tether is a giant in crytocurrency, an industry that Nigel Farage believes the UK should be embracing.
The German supermarket's $9bn US push targets urban hubs like Manhattan. Can its discount model match Walmart?
Michael Steranka, vice president at the mobile game's owner Scopely, says it has always been about bringing people together.
Within hours of fresh US attacks, Iran said it had struck US military bases in Kuwait, Jordan and Bahrain.
A month on from the firm's stock market debut, the reality of how SpaceX currently makes money has seemed to come into clearer focus.
Changing your broadband or energy supplier, or even your bank, for a better deal is simpler than it used to be.
The ASA says adverts claiming small devices can rapidly cool rooms were too good to be true.
The airline says a bid from US firm Apollo has trumped a recent takeover offer from Castlelake.
A High Court judge said some major car manufacturers did not install a device to cheat emissions testing.
The White House has hailed the project as giving new generations a stake in the American dream, but the scheme has its critics.
The German supermarket's $9bn US push targets urban hubs like Manhattan. Can its discount model match Walmart?
People are being consulted about plans to stop vape companies using enticing flavour descriptions that "attract" children into experimenting.
The man's wife held onto his legs for around five minutes to stop him from being sucked out, officials say.
The ASA says adverts claiming small devices can rapidly cool rooms were too good to be true.
The airline says a bid from US firm Apollo has trumped a recent takeover offer from Castlelake.
A High Court judge said some major car manufacturers did not install a device to cheat emissions testing.
The shares are set to start trading on the Nasdaq on Friday in what will be the largest ever debut by a foreign firm.
The BBC looks at the growing trend of people swapping homes to cut holiday costs.
People are being consulted about plans to stop vape companies using of enticing flavour descriptions that "attract" children into experimenting.
The ASA says adverts claiming small devices can rapidly cool rooms were too good to be true.
The airline says a bid from US firm Apollo has trumped a previous potential takeover offer from Castlelake.
Millions of phone calls from customers were "likely mishandled" over nearly a three-year period, the regulator says.
The power plant was due to reach the end of its life in 2035 but will now continue until 2055.
Adura says the UK government must approve North Sea production urgently to avoid domestic supply shortages.
The CEO of Lloyds Bank talks about how to save, budget, avoid scams and manage money in a relationship.
The insurance cost of electric vehicles is still putting off many would-be buyers. So what can be done about it?
23andMe compiles genetic profiles of people through DNA testing kits, but it was heavily criticised after a 2023 hack.
Servers at data centres in Sydney and Melbourne were to blame but the exact cause remains unknown.
The BBC looks at how spending habits have shifted as users report feeling less hungry.
No final decision has been made but the job cuts will happen in the autumn if the redundancy plans are approved.
Millions of phone calls from customers were "likely mishandled" over nearly a three-year period, the regulator says.
Around the world women are marking their split with new - or repurposed engagement - rings.
A new report says students were not well-enough informed that their loan terms could change retrospectively.
The firm's shares fell sharply on Tuesday as some investors had expected an even stronger performance.
Rachael Bews says she told on the way her child would not be allowed on site. Amazon has apologised for not communicating its policy clearly.
Some of the UK's biggest banks have been failing their most vulnerable customers, according to the financial regulator.
The low-cost airline had previously rejected four takeover offers from US investment firm Castlelake.
A court in China ruled that Molly Tea had infringed on the luxury brand's four-petal flower design.
The once-a-day pill, from the makers of the Wegovy weight-loss jab, can now be bought privately in UK pharmacies.
Queues are expected at airports this summer owing to EU's new digital border control system.
The two broadcasters say the deal will create a strong rival to global streaming giants.
The government had initially said it would not relax licensing laws further for the World Cup.
But the likely next PM says he will stick to Labour's pledges to not raise VAT, income tax or national insurance.
More than 250 of the UK's biggest employers have signed up to his 'Get Britain Working' taskforce.
Wedding lists are being replaced by cash requests, but guests are divided over how much to give.
Employers are being urged to use their "common sense" to allow staff to work flexibly where they can.
The government had initially said it would not relax licensing laws further for the World Cup.
But the likely next PM says he will stick to Labour's pledges to not raise VAT, income tax or national insurance.
More than 250 of the UK's biggest employers have signed up to his 'Get Britain Working' taskforce.
Wedding lists are being replaced by cash requests, but guests are divided over how much to give.
Employers are being urged to use their "common sense" to allow staff to work flexibly where they can.
The ads use terms including “rape” and “child video” and link to content on the messaging app Telegram.
The airline calls on European governments to postpone the EES system until after the summer holiday period.
Millions are likely to have eaten "lamb" kebabs that were actually made with goat, skin and fat.
The government had initially said it would not relax licensing laws further for the World Cup.
Wedding lists are being replaced by cash requests, but guests are divided over how much to give.
Kia told the BBC UK law prevented its location tracking function being used to live track vehicles.
Official documents show the US president made billions of dollars as he returned to the White House.
The luxury home was seized as part of a probe into the illegal trade of servers containing AI semiconductors.
When the US-Israel war with Iran began, fuel costs jumped, but they are now plummeting as hope of lasting peace grows.
Hundreds of fans who bought World Cup tickets on resale site StubHub say they have had them cancelled at the last minute.
The Australian Competition and Consumer Commission (ACCC) says Amazon has broken consumer protection law
Many younger people do not believe the state pension will exist when they are older
Fable and Mythos were abruptly suspended in June over concerns that they could be used by hackers.
Household energy prices have risen by 13% a year as regulator Ofgem's latest price cap kicks in.
The president's crypto income far outpaces his earnings from real estate and Trump-themed items such as watches.
NSE and Jio Platforms embody the sweeping changes in how India has consumed, invested and transacted over the past decade.
He was accused of using money for a Netflix show on lavish purchases like Rolls Royces and Ferraris.
Guo Wengui branded himself as a China critic, gaining followers who backed his fraudulent schemes.
The Fire (Financially Independent, Retire Early) movement sees followers save as much as possible.
Three in five homes listed for sale since January remain on the market, says property portal Zoopla.
King Charles paid £12.9m in tax for 2024-2025 - here's what we know about his unique tax situation.
Some analysts say the first non-stop London to Sydney flight is a major milestone - but would you buy a ticket?
Christian Williams benefitted to the tune of £160,000 from offending - but had just £1 to pay back.
As the world's best players begin play at Wimbledon, how can you get into sport on a budget.
The US president says "Numerous European countries" have been discussing bringing in such a levy.
Trading on South Korea's Kospi index was halted for the third time this week to prevent panic selling.
Lithium battery fires are the number one safety risk to aircraft, yet the number of devices found in hold bags has nearly doubled in a year.
Rising costs are forcing more young adults to live with their parents, here's how not to come to blows.
King Charles paid £12.9m in tax for 2024-2025 - here's what we know about his unique tax situation.
The US president says "Numerous European countries" have been discussing bringing in such a levy.
Trading on South Korea's Kospi index was halted for the third time this week to prevent panic selling.
Lithium battery fires are the number one safety risk to aircraft, yet the number of devices found in hold bags has nearly doubled in a year.
Rising costs are forcing more young adults to live with their parents, here's how not to come to blows.
King Charles paid £12.9m in tax for 2024-2025 - here's what we know about his unique tax situation.
The US president says "Numerous European countries" have been discussing bringing in such a levy.
Trading on South Korea's Kospi index was halted for the third time this week to prevent panic selling.
Lithium battery fires are the number one safety risk to aircraft, yet the number of devices found in hold bags has nearly doubled in a year.
Rising costs are forcing more young adults to live with their parents, here's how not to come to blows.
King Charles paid £12.9m in tax for 2024-2025 - here's what we know about his unique tax situation.
The US president says "Numerous European countries" have been discussing bringing in such a levy.
Trading on South Korea's Kospi index was halted for the third time this week to prevent panic selling.
Lithium battery fires are the number one safety risk to aircraft, yet the number of devices found in hold bags has nearly doubled in a year.
Rising costs are forcing more young adults to live with their parents, here's how not to come to blows.
King Charles paid £12.9m in tax for 2024-2025 - here's what we know about his unique tax situation.
The US president says "Numerous European countries" have been discussing bringing in such a levy.
Trading on South Korea's Kospi index was halted for the third time this week to prevent panic selling.
Lithium battery fires are the number one safety risk to aircraft, yet the number of devices found in hold bags has nearly doubled in a year.
Rising costs are forcing more young adults to live with their parents, here's how not to come to blows.
King Charles paid £12.9m in tax for 2024-2025 - here's what we know about his unique tax situation.
The US president says "Numerous European countries" have been discussing bringing in such a levy.
Owen Flowers and Thalha Jubair were convicted for their roles in the attack, which led to large costs for Transport for London.
The prime minister's resignation has fired the starting gun on the race to be in charge of the UK's finances.
Trading on South Korea's Kospi index was halted for the third time this week to prevent panic selling.
Rising costs are forcing more young adults to live with their parents, here's how not to come to blows.
Lithium battery fires are the number one safety risk to aircraft, yet the number of devices found in hold bags has nearly doubled in a year.
Owen Flowers and Thalha Jubair were convicted for their roles in the attack, which led to large costs for Transport for London.
The prime minister's resignation has fired the starting gun on the race to be in charge of the UK's finances.
Trading on South Korea's Kospi index was halted for the third time this week to prevent panic selling.
Rising costs are forcing more young adults to live with their parents, here's how not to come to blows.
Lithium battery fires are the number one safety risk to aircraft, yet the number of devices found in hold bags has nearly doubled in a year.
Gold investors are always watching for subtle signals in the market—especially from seasoned insiders and high-conviction strategists. A recent “top i...
<div><img src="https://fortune.com/img-assets/wp-content/uploads/2026/06/GettyImages-2278301354-e1782470888324.jpg?w=2048" style="width: 100%;" /><div><p class="wp-block-paragraph">In the run-up to the internet bubble, the richest 20% of American consumers made up 50% of spending—boosted by the ballooning valuations of their portfolios. <br><br>Fast forward to the era of AI, and again, the richest households in the U.S. are gaining confidence as their asset valuations grow. Only this time, the spending of the top 20% accounts for 60% of personal outlays—meaning economic growth is even more dependent on a small subset of households than in previous cycles.<br><br>This isn’t a problem, per se, writes Moody’s chief economist Mark Zandi. But it does mean that the <a href="https://fortune.com/2025/10/09/america-feels-recession-state-dependent-income-cohort-moody-zandi/">health of the U.S. economy is balanced on an increasingly precarious set of dominoes.</a></p> <p class="wp-block-paragraph">In a note shared with <em>Fortune,</em> published earlier this week, Zandi wrote households raking in $200,000 or more a year were powering overall spending. In the year ending Q1 2026, outlays by this top fifth percentile grew by 6.5%—or 4% after inflation.</p> <p class="wp-block-paragraph">Meanwhile, outlays for the bottom 80% were unchanged once inflation is taken into account, Zandi notes: “This gap has persisted since the pandemic, which helps explain why most Americans are upset about their financial situations and the broader economy’s performance.”</p> <p class="wp-block-paragraph">This might explain the gap <a href="https://fortune.com/2026/04/30/global-economy-recession-oil-fears-mohamed-el-erian-zandi/">between economic data and consumer perception</a>. The U.S. economy is, by many measures, faring pretty well: Unemployment is holding relatively steady, GDP increased at an annual rate of 2.1% in the first quarter of 2026, and while inflation remains elevated, consumers are still spending. </p> <p class="wp-block-paragraph">However, DC’s midterm battle may come down to affordability—a lightning rod as voters continue to push for relief for their wallets.</p> <p class="wp-block-paragraph">“The K-shaped economy—with the well-to-do thriving and everyone else lagging—remains firmly intact, and there is no sign that the trend line will reverse soon,” Zandi adds. Moody’s analysis of Fed personal finance data shows that, since the pandemic, personal outlay growth for the bottom 80% has been 4.5%, barely ahead of inflation at 3.9%. Meanwhile, the top 20% have increased their spending by 8.3%. </p> <h2 class="wp-block-heading">Balancing a bubble</h2> <p class="wp-block-paragraph">While it’s good news that there is some growth in consumer spending, Zandi is cautious about the extent of the reliance on the wealthy cohort—especially because their wealth is derived from the stock market, where bubble questions are rife.</p> <p class="wp-block-paragraph">Zandi says a similar phenomenon was observed in the late 1990s: “This reflects the wealth effect, which holds that changes in household wealth affect consumers’ willingness and ability to spend. If wealth increases, as it has over much of the past decade, consumers spend more of their income and the cash generated from capital gains realizations.”</p> <p class="wp-block-paragraph">The vast majority of these assets are owned by the wealthiest Americans, Zandi adds, citing the Fed’s distributional accounts, which show almost 90% of corporate equities and mutual funds are held by those in the top 20% of the income distribution— a factor which has become more highly skewed in recent years.</p> <p class="wp-block-paragraph">Is this a bubble? Zandi writes that elements of the market are “overvalued, bordering on speculative,” adding: “Given how important the well-to-do are to spending and the economy, and the importance of surging stock prices to the well-to-do, it is critical to consider the durability of the runup in stock prices. Based on historically tried-and-true measures of stock market valuation, there are reasons to be nervous.”</p> <p class="wp-block-paragraph">Price-to-earnings multiples are “sending up yellow, if not red, flares,” he writes, given their reading of 19x. “It would be an overstatement to call the current stock market a bubble, but the warning signs are accumulating,” Zandi notes.</p> <p class="wp-block-paragraph">“To be sure, AI stock prices have soared for strong fundamental reasons, as AI promises to be a game-changing technology. But they have also received a big boost from index funds that must buy AI stocks simply because those companies have become a larger share of the index.”</p> <p class="wp-block-paragraph">As such, Zandi suggests consumer spending is far more tenuous than it appears on the surface, and if “everything sticks to script,” then wealthy consumers and the broader economy will be fine. However, “It is not hard to envisage an alternative scenario in which the stock market stumbles, prompting this group to become more cautious in their spending and causing the broader economy to struggle.”</p> <p>This story was originally featured on <a href="https://fortune.com/2026/06/26/richest-consumers-powering-us-economy-stock-price-bubble-concern/" target="_blank">Fortune.com</a></p></div></div>
Auto giant Volkswagen is reportedly planning to cut 100,000 jobs and end production at four German plants over the coming years.
SpaceX stock has seen big spikes and drop in its opening two weeks as a public company.
As the global race for AI moves forward, a shortage of memory chips has begun to drive up prices of consumer electronics and may lead to product shortages.
World Cup trading and the end of its U.S. waitlist are driving rapid growth for Polymarket's prediction market platform.
Companies are tightening their AI budgets to focus on getting a return on their investment, and that could dampen growth rates at OpenAI and Anthropic.
The amount lost to imposter scams is part of $15.9 billion in total fraud losses reported to the Federal Trade Commission in 2025
The World Cup winners and losers in advertising may be indicative of a broader trend of how people are responding to authentic branding.
The moves would appear to make Doug Petno and Troy Rohrbaugh the most obvious possible successors to JPMorgan Chase CEO Jamie Dimon.
<div><img src="https://fortune.com/img-assets/wp-content/uploads/2026/06/20260624CP_FrameworkVentures-100-e1782421854402.jpg?w=2048" style="width: 100%;" /><div><p class="wp-block-paragraph">Crypto is boring right now, and AI is hot, so it’s no wonder that a growing list of digital asset VCs are expanding their focus beyond blockchain. San Francisco-based Framework Ventures is the latest investor to join the trend, and the firm announced on Friday that it raised $400 million for its fourth fund.</p> <p class="wp-block-paragraph">Framework cofounders Vance Spencer and Michael Anderson declined to name their LPs but said contributors to their fourth stash of capital include funds of funds, an Ivy League endowment, sovereign wealth funds, and nonprofits. The VC held $1.28 billion in assets under management in December 2025, according to a filing with the Securities and Exchange Commission.</p> <p class="wp-block-paragraph">The firm plans to use its new capital to invest in what Spencer and Anderson called “frontier technology,” a sweeping term that not only includes crypto but also AI, robotics, and energy, said the duo. While it may seem like Framework is jumping on the AI bandwagon, the VC is actually following the shifting interests of its network of founders, said Anderson.</p> <p class="wp-block-paragraph">“We can see these founders leading us in this direction,” he added. “We should pay attention.” </p> <h2 class="wp-block-heading">DeFi and beyond</h2> <p class="wp-block-paragraph">Although crypto boomed shortly after President Donald Trump won the election, the market has petered out over the past eight months as Bitcoin approaches lows not seen since 2024. Meanwhile, <a href="https://fortune.com/2026/06/02/anthropic-confidential-s-1-ai-ipo-race/">AI companies like Anthropic</a> and OpenAI continue to balloon in valuation as VCs hope for historic returns when and if the leading AI labs IPO.</p> <p class="wp-block-paragraph">Amid the crypto downturn and AI boom, Framework’s competitors have shifted focus. Paradigm, one of the largest VCs in digital assets, is <a href="https://www.wsj.com/articles/crypto-firm-paradigm-to-expand-into-ai-robotics-with-new-fund-15d22182">reportedly</a> raising as much as $1.5 billion for a new fund that will not only focus on crypto but also AI and robotics. And Haun Ventures, founded by a former partner at Andreessen Horowitz’s crypto arm, has also expanded its mandate, <a href="https://www.bloomberg.com/news/articles/2026-05-04/crypto-investor-haun-raises-1-billion-for-funds-expands-to-ai-agents">raising</a> $1 billion for a second fund that targets not only blockchain but also AI, financial services, and alternative assets.</p> <p class="wp-block-paragraph">Launched in 2019, Framework Ventures made its name as an early backer of protocols in DeFi, or decentralized finance. Although Spencer and Anderson were alumni of Big Tech firms (<a href="https://fortune.com/company/netflix/" target="_blank">Netflix</a> and Snapchat, respectively), the duo quickly won over crypto’s anonymous “degens”—industry slang for degenerate traders. Their firm were early backers of the crypto lender Aave and the blockchain data network Chainlink, both of which have grown to become dominant protocols in DeFi.</p> <p class="wp-block-paragraph">Framework also grew, raising $100 million for a second fund in 2021 and then $400 million for a third the next year to invest in crypto. But now, the VC is touting its non-crypto bets, including the robotics data startup <a href="https://fortune.com/2026/06/01/mecka-ai-series-a-60-million-robotics-data-training/">Mecka AI</a> as well as a <a href="https://fortune.com/2026/02/23/better-com-framework-ventures-homecoin-tokenized-mortgages/">stake</a> in the public mortgage issuer Better.com. The fund has already deployed about half of its fourth stash of capital, said Anderson. </p> <p class="wp-block-paragraph">Inevitably, as AI saturates every nook and cranny of Silicon Valley (even the billboards), investors who got their start in crypto can’t help but keep up. In fact, Framework has hosted reading AI research paper reading sessions at its San Francisco office on the weekends, said Anderson. “Just because we’re crypto,” he said, “doesn’t mean that we haven’t been paying attention.”</p> <p class="wp-block-paragraph">See you next week,</p> <p class="wp-block-paragraph"><strong>Ben Weiss<br>X:</strong> <a href="https://x.com/bdanweiss">@bdanweiss</a><br><strong>Email:</strong> <a href="mailto:benjamin.weiss@fortune.com">benjamin.weiss@fortune.com</a><br>Submit a deal for the Term Sheet newsletter <a href="mailto:termsheet@fortune.com">here</a>.</p> <p class="wp-block-paragraph"><em><em>Joey Abrams curated the deals section of today’s newsletter.</em></em> <a href="https://fortune.com/newsletters/term-sheet">Subscribe here</a>.</p> <p>This story was originally featured on <a href="https://fortune.com/2026/06/26/framework-ventures-fourth-fund-400-million-frontier-technology-vance-spencer-michael-anderson/" target="_blank">Fortune.com</a></p></div></div>
Daily market snapshots are more than just numbers—they can hint at where investor confidence is moving. The latest “top buyers and sellers” update for...
Gold often moves against the “noise” of markets—so when investors start looking for their next steps, it’s worth remembering that diversification and ...
<div><img src="https://fortune.com/img-assets/wp-content/uploads/2026/06/GettyImages-2278301354-e1782470888324.jpg?w=2048" style="width: 100%;" /><div><p class="wp-block-paragraph">In the run-up to the internet bubble, the richest 20% of American consumers made up 50% of spending—boosted by the ballooning valuations of their portfolios. <br><br>Fast forward to the era of AI, and again, the richest households in the U.S. are gaining confidence as their asset valuations grow. Only this time, the spending of the top 20% accounts for 60% of personal outlays—meaning economic growth is even more dependent on a small subset of households than in previous cycles.<br><br>This isn’t a problem, per se, writes Moody’s chief economist Mark Zandi. But it does mean that the <a href="https://fortune.com/2025/10/09/america-feels-recession-state-dependent-income-cohort-moody-zandi/">health of the U.S. economy is balanced on an increasingly precarious set of dominoes.</a></p> <p class="wp-block-paragraph">In a note shared with <em>Fortune,</em> published earlier this week, Zandi wrote households raking in $200,000 or more a year were powering overall spending. In the year ending Q1 2026, outlays by this top fifth percentile grew by 6.5%—or 4% after inflation.</p> <p class="wp-block-paragraph">Meanwhile, outlays for the bottom 80% were unchanged once inflation is taken into account, Zandi notes: “This gap has persisted since the pandemic, which helps explain why most Americans are upset about their financial situations and the broader economy’s performance.”</p> <p class="wp-block-paragraph">This might explain the gap <a href="https://fortune.com/2026/04/30/global-economy-recession-oil-fears-mohamed-el-erian-zandi/">between economic data and consumer perception</a>. The U.S. economy is, by many measures, faring pretty well: Unemployment is holding relatively steady, GDP increased at an annual rate of 2.1% in the first quarter of 2026, and while inflation remains elevated, consumers are still spending. </p> <p class="wp-block-paragraph">However, DC’s midterm battle may come down to affordability—a lightning rod as voters continue to push for relief for their wallets.</p> <p class="wp-block-paragraph">“The K-shaped economy—with the well-to-do thriving and everyone else lagging—remains firmly intact, and there is no sign that the trend line will reverse soon,” Zandi adds. Moody’s analysis of Fed personal finance data shows that, since the pandemic, personal outlay growth for the bottom 80% has been 4.5%, barely ahead of inflation at 3.9%. Meanwhile, the top 20% have increased their spending by 8.3%. </p> <h2 class="wp-block-heading">Balancing a bubble</h2> <p class="wp-block-paragraph">While it’s good news that there is some growth in consumer spending, Zandi is cautious about the extent of the reliance on the wealthy cohort—especially because their wealth is derived from the stock market, where bubble questions are rife.</p> <p class="wp-block-paragraph">Zandi says a similar phenomenon was observed in the late 1990s: “This reflects the wealth effect, which holds that changes in household wealth affect consumers’ willingness and ability to spend. If wealth increases, as it has over much of the past decade, consumers spend more of their income and the cash generated from capital gains realizations.”</p> <p class="wp-block-paragraph">The vast majority of these assets are owned by the wealthiest Americans, Zandi adds, citing the Fed’s distributional accounts, which show almost 90% of corporate equities and mutual funds are held by those in the top 20% of the income distribution— a factor which has become more highly skewed in recent years.</p> <p class="wp-block-paragraph">Is this a bubble? Zandi writes that elements of the market are “overvalued, bordering on speculative,” adding: “Given how important the well-to-do are to spending and the economy, and the importance of surging stock prices to the well-to-do, it is critical to consider the durability of the runup in stock prices. Based on historically tried-and-true measures of stock market valuation, there are reasons to be nervous.”</p> <p class="wp-block-paragraph">Price-to-earnings multiples are “sending up yellow, if not red, flares,” he writes, given their reading of 19x. “It would be an overstatement to call the current stock market a bubble, but the warning signs are accumulating,” Zandi notes.</p> <p class="wp-block-paragraph">“To be sure, AI stock prices have soared for strong fundamental reasons, as AI promises to be a game-changing technology. But they have also received a big boost from index funds that must buy AI stocks simply because those companies have become a larger share of the index.”</p> <p class="wp-block-paragraph">As such, Zandi suggests consumer spending is far more tenuous than it appears on the surface, and if “everything sticks to script,” then wealthy consumers and the broader economy will be fine. However, “It is not hard to envisage an alternative scenario in which the stock market stumbles, prompting this group to become more cautious in their spending and causing the broader economy to struggle.”</p> <p>This story was originally featured on <a href="https://fortune.com/2026/06/26/richest-consumers-powering-us-economy-stock-price-bubble-concern/" target="_blank">Fortune.com</a></p></div></div>
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