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

Group 1 - The S&P 500 is experiencing a third consecutive annual gain in double digits, driven by strong momentum in AI stocks, particularly Nvidia and Alphabet, which have seen increases of over 30% and 60% respectively this year [1][2] - Investors are optimistic about AI technology, viewing it as a potential game changer similar to the internet and the telephone, with expectations that it will enhance business operations and spur innovation [2] - A lower interest rate environment, due to a series of Federal Reserve rate cuts, has contributed to investor optimism, reducing borrowing costs for companies and increasing consumer buying power, which is beneficial for earnings growth [3] Group 2 - The AI boom has led to significant earnings growth for leading tech companies, with high demand for AI products and services from firms like Nvidia, Amazon, and Palantir Technologies [5] - The S&P 500 Shiller CAPE ratio has reached 39, a level not seen since the dot-com era, indicating a rare market condition that has only occurred twice in the past 153 years [6] - The excitement surrounding AI stocks has propelled the S&P 500 to record levels, with the index on track for its third annual increase, each time achieving double-digit gains [7]