U.S. Stock Market and Economy Diverge in H1 2026, S&P 500 Up 10% as GDP Growth Slows to 1.9%

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According to CNBC, the U.S. stock market and economy sharply diverged in the first half of 2026, with the S&P 500 rising nearly 10% and the Dow Jones climbing almost 9%, while GDP growth decelerated to 1.9% compared to 3.3% in 2023. Economists attributed the disconnect primarily to artificial intelligence stocks, which buoyed major technology companies. Artificial intelligence companies account for roughly 50% of the broad technology sector, which represents about 35% of the overall stock market, though technology comprises only 10% to 15% of the U.S. economy.
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