JPMorgan Predicts 2026 Will Be Shaped by AI Super-Cycle, Divergent Monetary Policies, and Economic Structural Shifts, Supporting Global Equity Gains and a Bullish Outlook for the S&P 500 to Reach 7500.

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 JPMorgan predicts that 2026 will be dominated by the AI supercycle, divergent monetary policies, and structural economic divergence, supporting a global stock market rally and a bullish outlook for the S&P 500 to reach 7500 points.
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JPMorgan's View of 2026: Economic Divergence, Policy Divergence, Soaring AI Adoption

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Yardeni Research President Ed Yardeni has abandoned his long-standing "overweight" rating on the Magnificent 7 stocks, stating they are now "somewhat overvalued." He highlights the market's extreme concentration, with tech and communication services making up 45% of the S&P 500. Yardeni believes these giants must now find sales among the other "Impressive 493" S&P companies to drive productivity. He describes a new competitive "Game of Thrones" environment where tech firms challenge each other and face threats from newcomers. Instead, Yardeni recommends investing in financials, industrials, healthcare, and overseas stocks.

<html><head></head><body>The president of sell-side Wall Street firm Yardeni Research is now underweight on the Magnificent 7 stocks.
Ed Yardeni says in a new interview on CNBC that he thinks those top stocks are “somewhat overvalued.”

“We’ve got to the point where information technology and communication services in the S&P 500 now account for 45% of the S&P 500. It’s a very concentrated market capitalization. And I think if the Magnificent 7 are going to continue to succeed, then they’re going to have to find sales among the S&P 493, I call them the ‘Impressive 493,’ in order to be used for increasing productivity.” 
The shift is Yardeni’s first move away from being overweight on the sector in 15 years. The Wall Street veteran says the Mag 7 is now in a “Game of Thrones”-style environment, with different tech giants competing with one another.
“They used to just kind of operate in their own moats and leave each other alone, and I think we’re now having a competitive situation, and not only that, but I think we’re going to find other start-ups to come and challenge some of their technologies.”
Yardeni recommends investing in financials, industrials, the healthcare industry and overseas stocks instead of the Mag 7.
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