The Stock Market Is Roaring. It's (Basically) All From AI. -- WSJ

By Konrad Putzier

One major bright spot has been the stock market. The S&P 500 index plunged early in President Trump's second term amid fears over trade wars, but later recovered. It is up around 30% since the start of 2025.

That has boosted the net worth of Americans who own stocks. And while a larger net worth might not mean a higher monthly income, it has made many people comfortable with spending a bit more than they might otherwise. That consumer spending, in turn, has boosted the overall U.S. economy.

But the market boom is also heavily dependent on a handful of AI-related stocks, which makes it vulnerable to a bust if the technology fails to live up to its promise.

This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).

(END) Dow Jones Newswires

November 01, 2026 04:00 ET (09:00 GMT)