Will The A.I. Stock Juggernaut Run Out Of Steam Soon? | Katie Stockton
The big Tech stocks are now an unprecedented % of the S&P's market value
Yesterday, the S&P 500 index traded at a new all-time high, within less than 100 points of the big round 7,000 milestone.
And Nvidia just became the first $5 trillion market cap company in history.
So the bull market in stocks appears to be doing just fine -- despite the skeptics’ worries that current valuations are far too high when compared to fundamentals.
Will the party continue on from here in 2026?
Or will the new year end the current 3-year stream of double digit returns for stocks?
To discuss, we’re fortunate to welcome back to the program market technician and portfolio manager Katie Stockton, Founder and Managing Partner of Fairlead Strategies.
The top 10 stocks now make up 40% of the S&P 500’s market value
Katie warns that if they stall out, the entire market will follow suit.
For her latest outlook on the markets, click here or on the video below:
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Adam’s Notes: Katie Stockton (recorded 10.29.25)
EXECUTIVE SUMMARY:
Katie Stockton provides a technically grounded view of the current market, emphasizing strength and momentum that could carry stocks through 2026, despite overextended valuations and technical signals cautioning a potential pause or pullback.
She highlights the importance of technical indicators, trend analysis, and confirmation signals such as breakouts and momentum gauges to guide investment decisions, advocating a systematic and risk-managed approach.
Stockton discusses the influence of AI on market valuations, noting its current momentum but also cautioning against a
