Markets swell as the economy shrinks

The economy is sputtering, but the markets are thriving — a highly unusual event that shows how the coronavirus has thrown all bets off.

Why it matters: The disconnect adds to the wealth gap. The richest 10% of households — who own 84% of stocks — are getting richer, while millions of out-of-work Americans cross their fingers that pandemic unemployment benefits will be extended.

Driving the news: The equities markets closed Tuesday with their best quarterly performance since 1998 — the type of upswing that usually doesn't happen when the...