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The Guardian - UK
The Guardian - UK
Business
Graeme Wearden

From the AI bubble to Fed fears: the global economic outlook for 2026

A man wearing novelty glasses in the shape of the numbers 2026 with financial data on screens behind him
A trader on the New York Stock Exchange wears 2026 glasses to see in the new year. Photograph: Timothy A Clary/AFP/Getty Images

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.

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