The U.S. economy is increasingly splitting between the haves and the have-nots, with record stock prices and artificial intelligence driving a virtuous cycle for the wealthy but leaving much of Main Street behind, according to Samantha LaDuc, chief market strategist at LaDuc Trading.
LaDuc’s comments came after Delta Air Lines reported a blowout third quarter, posting per-share earnings and revenue that far exceeded expectations, fueled by a sharp rebound in bookings during the final six weeks of the period.
While strong travel demand is often cited as a sign of consumer resilience, LaDuc cautioned that it reflects “re-acceleration for the haves but not the have-nots.”
She described the current environment as a “recession into all-time highs… for Main Street,” suggesting that even as financial markets and headline economic metrics such as GDP hit new records, ordinary households and small businesses remain under pressure, effectively experiencing a recession in real terms.
“The AI cycle drives nominal GDP higher and Wall St higher,” LaDuc wrote. “But that is only driving the high-end consumer spending in the high-end segments of the economy.”
Her assessment echoes recent analysis from Torsten Slok, chief economist at Apollo Global Management, who has argued that the apparent contradiction between accelerating GDP growth and a softening labor market can be explained in part by AI adoption.
“What is likely happening is that job growth is weaker because of AI implementation and lower immigration,” Slok wrote.
The result is a two-speed economy - one in which wealth and technology gains lift financial assets, while large swaths of workers and consumers struggle to keep up with inflation and a shifting job landscape.
The two-speed economy
The widening gap between rich and poor is becoming increasingly visible in U.S. economic data.
According to Federal Reserve figures, the top 10% of households now hold nearly 70% of total U.S. wealth, while the bottom 50% control just about 2.5%. Much of that imbalance stems from the fact that financial assets, such as stocks, mutual funds, and business stocks, are overwhelmingly concentrated among higher-income households.
At the same time, wage growth for typical workers has been flat or negative after adjusting for inflation, according to the Bureau of Labor Statistics.
While the wealthy have benefited from record stock prices and asset gains, many Americans face a more uncertain labor market.
Job postings on Indeed, the country’s most-visited hiring platform, have fallen sharply over the past year and are down for three consecutive years, according to data cited by InvestorsObserver.
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