Wall Street analysts expect another strong year in stocks in 2026, propelled by continued AI sector gains and additional Fed interest-rate cuts.

Looking for the stock market outlook for the first half of 2026? See what you should consider heading into the new year to help be prepared.

Admittedly, just because it has happened before doesn't mean it will happen again. Nothing is guaranteed in the stock market. However, the S&P 500 has a track record that warrants giving it the benefit of the doubt. This is especially true if time is on your side.

If you're in the "stock market is in a bubble" camp, look no further than the composition of the S&P 500 (^GSPC). The top 10 stocks now account for roughly 32% of S&P 500 earnings and over 41% of total market capitalization — levels not seen since at least 1980,

And with generative AI allowing each of the Magnificent 7 to eat into one another’s moats, each company becomes increasingly vulnerable to competition. And that, according to Yardeni, will bring greater spoils for the rest of the market.

Stocks could see wild swings in the last trading push of the year. Where to put your money. Investors are dumping stock-market winners and buying almost everything else. Why that’s a good sign.

This article will be updated throughout the day, so check back often for more daily updates. The Vanguard S&P 500 ETF (NYSEMKT: VOO) closed down 0.2% on Tuesday, its third straight day of losses, after the U.

Continued AI adoption and capex spending are likely to fuel further gains, but investors should be aware that a bubble may develop down the road.

Follow all the latest U.S. market action for Wednesday here to see if stocks can recover their poise after the latest pullback on tech-valuation concerns.

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The artificial intelligence (AI) stock has lost nearly half of its value this year, but its sales have been rising fast.