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StocksMedium•9 May 2026•

1 min read

US Market Divergence: AI Chip Rally Clashes with Record Low Consumer Sentiment

Key Facts

1The S&P 500 has risen over 12% since the start of April, driven by a 40% rebound in chip stocks.

2US consumer sentiment in May fell to a fresh record low of 48.2.

3The US 30-year fixed mortgage rate rose above 6.5%.

The US stock market is exhibiting a sharp divergence as the S&P 500 has climbed over 12% since early April, fueled by a massive 40% rebound in the semiconductor sector. Conversely, macroeconomic indicators paint a bleaker picture, with US consumer sentiment hitting a fresh record low of 48.2 in May. This decline is exacerbated by rising borrowing costs, as the 30-year fixed mortgage rate surged past the 6.5% threshold. While AI-driven demand continues to decouple equity markets from broader economic headwinds, the weakness in consumer fundamentals remains a significant concern. Analysts suggest that while tech remains resilient, the broader economy faces pressure from high interest rates and diminishing purchasing power. This split dynamic indicates potential volatility ahead for consumer-facing sectors despite the tech-led rally.