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S&P 500 Surge Predicted Despite AI Valuation Concerns

1/3/2026

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Summary

Story summary

DealBook notes that the S&P 500 had a strong 2025, with 39 record highs and a 16.4% gain.
Analysts predict the index will reach 7,968.78 by the end of 2026, signaling about a 16% rise.
Concerns about high valuations, especially among major tech companies involved in artificial intelligence, are causing investor anxiety.
RBC Capital Markets remains optimistic about continued market growth despite the doubts.

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Story summary

DealBook notes that the S&P 500 had a strong 2025, with 39 record highs and a 16.4% gain.
Analysts predict the index will reach 7,968.78 by the end of 2026, signaling about a 16% rise.
Concerns about high valuations, especially among major tech companies involved in artificial intelligence, are causing investor anxiety.
RBC Capital Markets remains optimistic about continued market growth despite the doubts.