Market Overview

Markets continue to hit new highs, thanks to AI

The S&P 500 continues to hit record highs thanks to upbeat corporate earnings, attractive valuations, the US economy’s strength, confidence in the de-escalation of the Middle East, and fiscal stimulus.

Thanks to Donald Trump’s One Big Beautiful Bill Act, Americans will pay $63 billion less in taxes in 2026 than in 2025, while the total amount of tax deductions will increase by $47 billion. This creates a kind of safety net for both the economy and the stock indices.

Around 80% of S&P 500 companies that have already reported their first-quarter results have exceeded earnings estimates. Morgan Stanley notes that issuers delivered a 6% positive earnings-per-share surprise, the best result in four years. In 2022, following the launch of ChatGPT, there was great excitement about the potential revenue from artificial intelligence technologies. Those expectations are now being realised.

The FxPro Analyst Team

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