AI boom lifts US wealth while widening the affordability divide

what happened

The US economy is undergoing a large and costly technological transformation, Reuters reports. Investment in artificial intelligence development could surpass the previous telecommunications boom, while stock-market gains have significantly lifted household wealth and helped keep consumer spending moving forward.

The gains, however, have been concentrated among the wealthiest Americans. From the end of Joe Biden’s administration through the second quarter of 2026, only the top 1% increased its share of national wealth, according to Federal Reserve data. Wealth among the lower 99% also rose, by 16.5%, or about $26 trillion. Less than half a trillion dollars went to the least-wealthy half of households, although that still represented an increase of roughly 10%.

Household spending continues to rise, but inflation is weakening its real growth. Hourly wages and the Consumer Price Index have been advancing at roughly the same pace, while highly visible costs such as gasoline and ground beef have climbed sharply. Import tariffs, energy costs linked to the Iran war and the AI boom have added to price pressures.

Housing remains a particularly sore point. Mortgage rates have risen by more than a full percentage point over the past year as bond yields increased, worsening an already unaffordable market. Spending has held up so far, but the gap between nominal and real consumption shows how much purchasing power inflation is absorbing.

why it matters

For markets, the picture combines strong investment and resilient demand with wider wealth inequality and pressure on real incomes. That complicates the outlook for sustainable US growth ahead of the midterm elections.

instruments