The S&P 500 bull market has seen significant annual gains over the past two years, with technology stocks, particularly in the AI space, leading the charge. Investors are banking on AI to drive corporate earnings growth and fuel innovation in various sectors.

The performance of tech stocks, known as the Magnificent Seven, has been key to the S&P 500’s success, with many of these companies heavily focused on AI. Amazon’s AWS revenue hit $132 billion annually, while Nvidia saw record revenue of $130 billion, driven by AI demand.

Concerns about a potential AI bubble have arisen as valuations soar, leading to recent pullbacks in tech stocks. However, history suggests that the S&P 500 bull market may continue into 2026, based on past bull market durations and market trends.

While historical trends can provide insights, unexpected market movements are always possible. Despite uncertainties, strong AI demand, earnings growth, and a favorable interest rate environment may support the continuation of the bull market into 2026, offering optimism for investors.

For those considering investing in the S&P 500 Index, it’s important to weigh the potential risks and rewards. The Motley Fool Stock Advisor team has identified 10 top stocks for investors to buy now, excluding the S&P 500 Index. Historical returns from previous stock picks highlight the potential for significant gains in the coming years.

Read more at Nasdaq: Could the Bull Market Roar Higher in 2026? History Offers an Answer That’s Remarkably Clear.