stock market != economy. People have been used to easy constant gains but this bull market has had the benefit of low interest tailwinds the entire time. Before

stock market != economy. People have been used to easy constant gains but this bull market has had the benefit of low interest tailwinds the entire time. Before the 2009 crisis, potential interest rate hikes would always act as a stock headwind. An economy getting hot leads to higher interest rates which makes stocks less tempting due to risk-free alternatives getting better. So it's very easy to have scenarios where stock market declines are occurring while the the economy is doing very well. That's what appears to be happening now, there are no economic indicators that show the economy is faltering at all.