Could the Bull Market Roar Higher in 2026? History Offers an Answer That's Remarkably Clear.

Group 1 - The S&P 500 bull market has entered its third year, with the index climbing more than 20% in each of the past two years and projected to increase again in 2025, primarily driven by technology stocks, especially in the AI sector [1][6] - Investors are increasingly attracted to AI stocks due to their potential to save time and money for companies, leading to significant advancements in various fields, which could enhance corporate earnings growth over time [2] - The performance of the S&P 500 during the AI boom has been significantly influenced by major tech stocks, particularly the "Magnificent Seven," which have experienced substantial share price increases over the past three years [5][7] Group 2 - Companies like Amazon and Nvidia have reported impressive revenue growth attributed to AI, with Amazon Web Services reaching an annual revenue run rate of $132 billion and Nvidia's revenue hitting $130 billion in the latest fiscal year [8] - Concerns have emerged regarding the potential formation of an AI bubble as stock valuations rise, alongside a recent pullback in tech stocks, suggesting a possible rotation into a broader range of stocks outside the AI sector [9]