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

Analysts and investors voice caution about tech valuations and Trump's influence on the US central bank

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.