- NVDA
- APH
- BE
For Immediate Release
Chicago, IL – September 29, 2026 – Today, Zacks Investment Ideas feature highlights Nvidia NVDA, Bloom Energy BE and Amphenol APH.
Weight of Evidence Points Higher for US Stocks, Led by AI
Interest rates near multi-decade highs, rising geopolitical tensions, persistently elevated inflation, a hawkish Fed, and constant warnings about an AI bubble, and yet volatility remains contained while the leading stock indexes sit just below record highs. How can all of this be true?
A strong economy, rising productivity, the AI infrastructure boom, federal deficit spending, and still-supportive financial conditions continue to keep the market very buoyant.
“As long as the US consumer keeps spending and the AI build-out keeps happening, things continue to motor along. And while the tail risks keep growing—geopolitical instability, domestic political questions, the trade war, inflation, energy prices—the market doesn’t seem to care as long as those 2 things of consumer spending and AI build-out continue forward, the underlying economy and, therefore, the markets keep powering forward.” — Apollo Global Management Co-President Scott Kleinman
“Economy is strong. Not more to say. I mean I can’t explain why the economy is so strong, but it is very strong on all fronts.” — M&T Bank CEO René Jones
“…we’re not seeing any deterioration. It’s continued strength. It may not be at the highest level that it’s been over the last 12 months, but we do see continued strength.” — Bank of America Co-President Jim DeMare
That strength has not been evenly distributed across the market, however. Over the last two months, AI-related stocks have increasingly carried the major indexes while many other areas have weakened.
Market breadth has been notably poor. The equal-weight S&P 500, Dow Industrials, and Russell 2000 have all significantly underperformed the capitalization-weighted S&P 500 and Nasdaq 100, with the latter already pushing to new highs.
At the same time, there are signs that sentiment and breadth may be approaching a bottom. The percentage of stocks trading below their 50-day and 200-day moving averages is nearing levels last seen around the March lows. That does not guarantee an immediate rebound, but it increasingly suggests the market may be closer to a washout than the beginning of another major leg lower.
That said, predicting the market’s direction over the next several days or weeks is difficult and, ultimately, not particularly necessary. What is much clearer is where leadership remains concentrated.
