The stock market keeps breaking records, which might seem confusing for consumers who feel the economy is worse than even the depths of the Great Recession.That seeming mismatch is a glaring one, particularly for those who aren’t invested in the markets and are missing seeing their personal wealth or retirement savings increase. But the stock market’s recent gains are being driven largely by investment in artificial intelligence, according to experts.
“The stock market is driven by corporate profits more than it’s driven by the economy,” Jeff Buchbinder, chief equity strategist for LPL Financial, told the Washington Examiner.
“So we have an environment now where all of this investment in AI by tech companies is driving huge gains in corporate profits, even while the economy grows at a fairly modest pace, and still, of course, has some headwinds,” Buchbinder added.
And investors are having a pretty good year so far.
The benchmark S&P 500 has risen nearly 11% since the start of 2026 — despite the war in Iran, the departure of Federal Reserve Chairman Jerome Powell, the threat of possibly higher interest rates, and rising inflation. Over the past year, the index has risen more than 28%.
