Overview
- As of Dec. 3, the Dow, S&P 500, and Nasdaq were up roughly 13%, 16%, and 21% for 2025, with multiple record highs reported.
- Analysts credit enthusiasm for artificial intelligence and expectations of lower interest rates as key drivers of this year’s rally.
- A new analysis flags three potential 2026 crash catalysts: historically pricey equities, a possible fade in hyped tech trends, and internal uncertainty at the Federal Reserve.
- Federal Reserve Chair Jerome Powell recently noted that equity prices are “fairly highly valued,” reinforcing concerns about stretched market pricing.
- Separate commentaries point to a rare market signal and policy headwinds, including proposed import tariffs, as additional factors that could test the rally’s durability.