Is the economy as good as Wall Street says it is? Financial markets and the data are telling different stories. - MarketWatch

1. S&P 500 and Nasdaq reaching fresh records amid investor optimism. 2. Weak labor market and rising inflation present economic concerns. 3. S&P 500 sectors, particularly consumer discretionary, show strong gains. 4. Interest rate cuts expected, influencing market optimism for 2026. 5. More than two-thirds of S&P 500 companies beat earnings expectations.