The resilient stock market may be keeping the economy out of a recession

1. S&P 500 trades at 22.5 times expected earnings, raising concerns over valuation. 2. Consumer spending rose unexpectedly, contributing to economic stability and potential GDP growth. 3. High-income households driving spending, reflecting wealth effect from stock market gains. 4. Despite positive data, low consumer sentiment indicates underlying economic vulnerability. 5. Inflation remains above target, prompting possible Federal Reserve rate cuts.