What recession? Why stocks are surging despite warnings of doom and gloom

Markets have rallied recently as the economy has proved sturdier than expected and as investors have latched onto artificial intelligence-related shares. Here, stock market numbers are displayed at the New York Stock Exchange on June 2. (Michael M. Santiago/Getty Images)

It has been a hell of a year so far. Three regional banks collapsed, the United States came close to defaulting on its debt for the first time in its history, and the Federal Reserve continued to hike interest rates aggressively.

But despite all that, the stock market surged in the first half of the year. What gives?