The Soaring Stock Market Is Just Getting Started, Don't Miss Out

• Q1 2026 earnings season shows 24% EPS growth, with subsequent quarters forecast at 21.3% (Q2), 18.2% (Q3), and 20.1% (Q4), described as 'spectacular' growth rates
• Productivity surged 2.8% in Q4 2025 and 5.2% in Q3 (the strongest quarterly gain in 5 years), suggesting an AI-driven productivity boom similar to the late 1990s internet era
• Small-caps are outperforming with the Russell 2000 up 12.6% YTD, benefiting from rate cuts and new tax provisions allowing 100% immediate expensing of capital expenditures

Market Summary: Bull Market Momentum Expected to Continue

Key Market Performance

• YTD Returns (2026): S&P 500 up 8.22%, Nasdaq up 12.8%, Russell 2000 up 12.6%, S&P 400 mid-cap up 9.22%
• Historical context: This marks the fourth consecutive year of double-digit gains (2023: 24.2%, 2024: 23.3%, 2025: 16.4%)

Main Thesis

Zacks Investment Research argues the current bull market has significant upside remaining, drawing parallels to the 1995-1999 dot-com boom which delivered 220% S&P gains over five years. The AI revolution is positioned as the primary catalyst, with legendary trader Paul Tudor Jones predicting "another year or two to run."

Key Earnings and Economic Data

• Q1 2026 earnings: 24.0% EPS growth rate
• Q2-Q4 2026 forecasts: 21.3%, 18.2%, and 20.1% respectively
• Productivity: Q4 2025 nonfarm productivity rose 2.8% annually (vs. 1.9% expected), with Q3 revised to 5.2%—the strongest quarterly gain in five years
• AI market projection: AMD CEO Lisa Su forecasts AI data center market reaching $1 trillion by 2030

Sector Highlights

Small-caps and mid-caps are outperforming in 2026, benefiting from rate cuts and tax provisions including 100% immediate expensing of capital expenditures. AMD projects 35% annual growth for 3-5 years driven by "insatiable" AI demand.

Investment Implication

The article promotes Zacks' proprietary stock-picking strategies, citing historical performance of up to 98.6% in 2025 versus the S&P's 17.5%.