Nearly three-quarters of Americans surveyed by Edelman Financial Engines said they had felt stressed about the economy and their personal finances during the past six months. The disconnect has widened since the Iran war began: the S&P 500 has recovered from an almost 8% monthly decline to close Thursday about 11% above its prewar level, while the University of Michigan’s consumer sentiment index has fallen 16%. Higher gas prices have fed into broader inflation, with consumer prices up 3.4% year over year in August, while wages rose 3.1%. Despite weaker sentiment, households continue spending, helped by record stock holdings and increased investment withdrawals. Employers added 162,000 jobs in August, and unemployment was 4.1%, although a low-hire, low-fire labor market, rising unemployment among recent graduates, remote work, AI, and pay failing to match inflation continue to pressure consumers.