Fast Food Stocks Indicating Consumers Are Tapped Out

The debate over whether stocks mirror the US economy has persisted for years. Politicians of both stripes tout the equities arena when there is a stampede of bulls and argue that it confirms their sound economic policies. But is Wall Street a mirror of the broader economy? The Dow Jones Industrial Average and the Nasdaq Composite Index were rocketing when the pandemic shuttered businesses and left millions unemployed. Indeed, there was a divergence between the economy and the stock market. That said, earnings reports and corporate guidance have recently offered some insights into where economic conditions could be heading.

Stocks Flashing Red

So far this year, the leading benchmark indexes have posted record highs as investors brace for the Federal Reserve slashing interest rates. But while armchair traders and institutional investors are booming in the current environment of…