Almost half of the S&P 500's market weight is related to Artificial Intelligence.

The current AI technology rollout is only in its second or third year of a potential 10-plus year adoption cycle, similar to the timelines for smartphones and cloud computing.

The US administration may reduce some tariffs heading into the midterm elections to alleviate cost-of-living pressures on American consumers.

J.P. Morgan forecasts that global equities will offer a 10% to 25% upside in 2026, outperforming other assets like cash and bonds.

J.P. Morgan's investment strategy for the U.S. in 2026 favors large-cap and growth stocks, driven by the continued rapid rollout of AI.

J.P. Morgan expects the US Federal Reserve to remain dovish through the first half of 2026 due to slowing wage growth and services inflation.

J.P. Morgan holds a bullish outlook on equities in Korea, India, and Brazil for 2026.

J.P. Morgan expects the investment trend in AI to broaden beyond core technology providers to the next tier of companies in the S&P 500 and international firms that are beneficiaries of AI adoption.

Rapid AI-related capital expenditures are expected to continue, driven by a competitive "race" between the US and China and a "winner-takes-all" mentality among US companies.

In the latest Q3 results for the S&P 500, the 493 stocks outside the 'Magnificent 7' recorded their best earnings growth in years at +12%.