I think the phenomenon you're talking about at the end of your comment is something that happens in spite of the beneficial effect of increased wages, rather than something that would count as evidence that people don't benefit from increased wages. Otherwise it would stand to reason that cutting wages would turn the equation inside out, so that buying power goes up with lower wages and economic gains go increasingly to the bottom of the more you lower wages. I don't think that it swings one way or the other, which is to say I don't think that they're so determinative of each other. Those two things just seem too remote from each other to be regarded as in immediate causal connection.

There are other contributing variables exerting their influence at the same time: investing, and lending, and spending, and taxing and policy choices are significant inputs that all happen in parallel with wage increases in particular policy and economic climates that have different outcomes from country to country.

It also seems to fly in the face of reason to suppose that efficient markets don't see market-wide increases in prices. Firms don't just compete against each other but against the existential question of solvency, and if we're really talking about competitive markets, then these pressures are experienced collectively.

So neither the evidence of the stock markets nor the theory about competitive markets never increasing their prices seem to do the work that they would need to do, to suggest that people seeing wage increases are not benefiting from them.