"Trump's first year back in office produced the second-highest annualized stock market return of any president over the last 129 years, only behind Calvin Coolidge."
"The S&P 500 finished 2025 up more than 28%, powered by a narrow group of mega-cap technology companies and accelerating AI infrastructure spending."
"The top 10 companies in the S&P 500 accounted for more than 38% of the index's gains, indicating a concentration of market performance."
"Investors poured capital into semiconductor makers, cloud computing firms, and energy producers supplying the electricity needed for expanding data centers."
The stock market began 2026 with high expectations following a strong performance in 2025, where the S&P 500 rose over 28%. Factors contributing to this rally included significant AI infrastructure spending, corporate tax optimism, falling inflation, and hopes for Federal Reserve rate cuts. However, the market's gains became increasingly concentrated among a few mega-cap technology companies, leading to uncertainty about the sustainability of this momentum and whether the previous rally marked a peak in the market cycle.
Read at 24/7 Wall St.
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