1. Large investments from two administrations boost corporate earnings potential. 2. AI capital expenditures are projected to reach $7 trillion by 2030. 3. Recent Fed rate cuts historically support equity market growth. 4. Most large-cap stocks are deemed reasonably priced, indicating potential for growth. 5. High money-market balances could reinvest into stocks if rates drop further.
The focus on infrastructure and AI spending suggests strong corporate earnings, akin to past bull markets following expansive fiscal policies, such as post-2008 recovery driven by government stimulus.
The article highlights key developments in fiscal policy and technology spending, which can significantly influence investor sentiment and market valuations for the S&P 500.
With necessary fiscal policies and AI developments unfolding, the long-term growth trajectory for the S&P 500 is set to benefit through sustained investments and innovation, similar to trends observed in the late 1990s tech boom.