A growing chorus on Wall Street is warning that the US economy is becoming increasingly K-shaped, with higher-income households powering spending while lower-income consumers struggle with affordability. It mirrors what investors have seen in the stock market, where Big Tech continues to drive the major indexes even as other sectors lag behind.
The concern: How long can those two realities coexist before something breaks?
“I don't think they're going to coexist forever,” Bank of America senior US economist Aditya Bhave told Yahoo Finance during the firm’s 2026 outlook call this week. “Our vi