Investors should monitor AI infrastructure spending and its impact on semiconductor profits for insight into the stock market’s future performance. Bond markets may see increased debt issuance to fund AI projects, potentially leading to higher government bond yields. Tariff-related inflation could influence the Fed’s rate decisions. The AI industry’s growth hinges on data such as AI accelerator revenue and hyperscaler capital expenditures. Semiconductor companies like Nvidia and Broadcom are expected to see revenue growth in 2026 due to the AI industry’s expansion. Hyperscalers’ spending on data centers will be crucial for the semiconductor and cloud computing sectors. AI-driven bond issuance is expected to exceed $300 billion in 2026, potentially impacting corporate and government bond markets. Rising electricity costs from AI infrastructure development could lead to higher consumer bills and regulatory concerns. Tariffs on imports continue to affect inflation, with potential future implications based on legal decisions and public opinion. Housing inflation may decrease in 2026, impacting overall inflation and potentially influencing the Fed’s rate decisions.

Read more at Morningstar: Watch These 6 Signals for Clues on Where US Markets Will Go In 2026