Will the A.I. Boom Continue to Drive Up Stocks in 2026?
The New York Times••general
Key Points:
- The stock market in 2025 ended close to analysts' expectations, with the S&P 500 rising 16.4 percent despite a volatile year.
- Analysts initially predicted steady market growth, interest rate cuts, and a business-friendly policy environment following President Trump’s re-election.
- The Federal Reserve cut interest rates by 0.75 percentage points, and while economic challenges remain, the overall economy is holding up reasonably well.
- The market’s rally was largely driven by optimism around artificial intelligence as a transformative, long-term growth driver due to significant investment and productivity potential.
- Market performance closely tracked the tech sector’s sentiment, with gains when technology stocks performed well and declines when they faltered.
