As long as the stock market works, the pricing represents long term growth rather than short term setbacks.
It represents projected long term growth. My point was that the long term employment outlook seems pretty bleak (e.g., https://www.cbo.gov/publication/56442#:~:text=CBO%20projects..., https://www.reuters.com/article/us-usa-economy-employment/u-...). So it's hard to see where the market is getting its long-term optimism. One possible answer is that it isn't long-term optimism at all, but a short-term expectation of continued government intervention prior to the November election.
But your general point is probably correct, based on the experience of the Great Recession. This study concluded that while all households lost about the same percentage of wealth, the wealthier households recovered more quickly: https://irle.berkeley.edu/files/2015/The-Rich-Got-Richer.pdf. The Economic Policy Institute concluded similarly that the bottom 80% was hit harder than the top 20% (https://www.epi.org/press/news_from_epi_th_great_recession_e...).