Investors expect global stock markets to keep rising in 2026, despite fears that the AI bubble could burst, and anxiety about chaos engulfing the US central bank.
Wall Street strategists broadly expect the S&P 500 share index of US-listed companies to continue to rise over the next 12 months, but said it could be a volatile year if geopolitical tensions increase and inflation fails to fall.
Top threats: AI fears, Fed turmoil and private credit
A poll of 440 investors, economists and analysts by Deutsche Bank found that 57% believe a plunge in technology valuations, or waning enthusiasm in AI, is a top risk to market stability in 2026.
Investors have never before been in such agreement about the biggest market risk for a year ahead than they are now: Deutsche Bank survey. “AI/tech bubble risk towers over everything else.” The next biggest risks: a loss in Fed independence and crisis in…
