At the midpoint of 2026, a recognizable theme has emerged. In the first few months of the year, stocks have reached a series of new highs in the face of daunting world events. Market volatility — triggered by wars in the Middle East and Ukraine, higher oil prices, elevated inflation, nervous consumers and concerns about a potential AI bubble — has not derailed key market indexes.
Whether that resilience holds depends on how these same forces evolve. Geopolitical tension and the midterm elections in the United States continue to add uncertainty. At the same time, the buildout of AI infrastructure remains a powerful tailwind. With innovative drug development, healthcare companies are enjoying rapid sales growth. Meanwhile, bonds are protecting against downside risk and helping smooth the ride for investors during periods of heightened market volatility.
We highlight five charts that help explain our outlook for the rest of 2026 and beyond, focusing on what’s driving markets today and where opportunities may lie ahead.
