AI Scrutiny Threatens Stock Rally as Nasdaq Surges 13% in 2026

3 articles · Updated · abcnews.com · Sep 18

Renewed warnings from AI leaders and the prospect of new U.S. guardrails are emerging as a fresh risk to a stock market that has largely shrugged off war, inflation and tariffs this year.
13% Nasdaq gains and an 11% rise in the S&P 500 have been powered by AI spending, with analysts saying hundreds of billions of dollars flowing into chips and data centers have lifted earnings well beyond tech.
95% of businesses that invested in AI have yet to make money from it, an MIT study found, underscoring how tighter regulation or higher borrowing costs could cool investment and pressure AI-linked shares.
About one-third of U.S. GDP growth in 2026 has come from AI investment, according to ING Markets, leaving the broader market exposed even as analysts still expect balanced regulation and continued economic growth to support indexes.