Goldman: Stock Rally's Wealth Effect to Boost US Consumption by 0.4 Points

The S&P 500's record run, fueled by artificial intelligence stocks, is increasing wealth inequality and driving consumer spending by the affluent, according to Goldman Sachs strategist Elsie Peng on June 5, 2026. Wealth effects from equity gains have added an average 0.3 percentage points to annualized consumption growth over the past two years, with approximately 0.2 points coming from AI-related companies such as Nvidia (NVDA) and Micron (MU). Peng expects wealth effects to lift consumption growth by 0.4 percentage points over the next year, with the top income quintile accounting for nearly all of the impact. The Dow Jones Industrial Average (DJI) surged 875 points to a record 51,562 on June 4, supported by UnitedHealth (UNH), Goldman Sachs (GS), and JPMorgan (JPM) as investors sought value beyond tech. The rally reflects robust corporate results, AI infrastructure spending, and economic resilience, underscoring why retailers like Walmart (WMT) and Target (TGT) have sustained sales despite rising gas prices.