Moody's Reports 60% of U.S. Spending by Top 20% Earners Amid AI Stock Boom
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
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Source: Benzinga
- Rising Income Inequality: Moody's analysis reveals that in Q3 2025, the top 20% of earners, making over $175,000 annually, accounted for nearly 60% of U.S. personal spending, marking a new peak since 1989 and illustrating a pronounced K-shaped economic divergence.
- Wealth Effect from AI Stocks: Chief Economist Mark Zandi attributes this disparity to the wealth effect driven by soaring asset prices, particularly from runaway AI stocks, which have significantly boosted the spending power of the wealthy, widening the gap with the bottom 80% of earners.
- Economic Vulnerability Warning: Zandi cautions that an economy reliant on the investment returns of a small elite is inherently fragile, especially vulnerable to stock market volatility, which could jeopardize overall economic growth.
- Societal Instability Concerns: He links this economic bifurcation to increasing societal angst and fractured politics in the U.S., suggesting that such a disparity in economic growth could lead to broader social issues and threaten national stability.
Analyst Views on QTUM
Wall Street analysts forecast QTUM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for QTUM is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
