The Stock Market Is Doing Something Witnessed Only 2 Times in 153 Years -- and History Is Very Clear About What May Happen in 2026.

The S&P 500 is heading for a third consecutive annual gain in the double digits as the bull market momentum continues -- and the index even closed at record levels in recent days. What's driven this seemingly unstoppable energy? Over the past couple of years, investors have rushed into artificial intelligence (AI) stocks -- in many cases, these players weigh heavily in the index, so they can significantly impact the index's direction. I'm talking about names such as Nvidia and Alphabet, for example, AI stocks that have climbed more than 30% and 60%, respectively, this year. Investors are betting on AI players because the technology may be a potential game changer, like the internet or, traveling much farther back in time, the telephone or the printing press. In the case of AI, analysts expect it to make business operations easier, faster, and cheaper -- and AI can spur innovation too. All of this makes it a very promising technology, and one that's already supercharged the earnings and stock performance of certain companies.A lower interest rate environment also has spurred investor optimism over the past year, as the Federal Reserve launched a series of rate cuts -- with the most recent one happening this month. Lower rates equal lower borrowing costs for companies, and more buying power for the consumer -- all of this is positive for earnings growth.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool