Wall Street is bullish on the US stock market, but consumers have low confidence.

The US stock market is approaching record highs, indicating that Wall Street is gradually learning to cope with ongoing geopolitical risks, while the average American is struggling to keep up. Consumer confidence is hovering at historic lows, with Americans becoming increasingly concerned about inflation exacerbated by conflicts in the Middle East. Earlier this month, the preliminary April consumer confidence index from the University of Michigan dropped from 53.3 in March to a record low of 47.6. The final value will be released on Friday. Despite weakening expectations among Americans, strong corporate profits, resurgence in AI trading, and overall economic resilience continue to support the stock market performance. Consumers are most worried about oil prices, as the closure of the Strait of Hormuz has pushed up fuel costs.