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AI and Energy Drive S&P 500 Gains—What It Means for Markets and the Economy

The S&P 500’s rally in the first half of this year was concentrated in AI and energy.
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AI and Energy Drive S&P 500 Gains—What It Means for Markets and the Economy
A board shows stock prices at the New York Stock Exchange on April 22, 2026. Angela Weiss/AFP via Getty Images
Panos Mourdoukoutas
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The S&P 500’s performance in the first half of 2026 tells two very different stories. On one hand, the benchmark index has surged to record highs. On the other, the rally has been unusually narrow, driven largely by artificial intelligence (AI) and energy stocks while much of the rest of the market has lagged.

“Strip out AI and energy, and the S&P 500 is down,” Torsten Slok, partner and chief economist at Apollo, wrote in a post on the firm’s website.

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Panos Mourdoukoutas
Panos Mourdoukoutas
Author
Panos Mourdoukoutas is a professor of economics at Long Island University in New York City. He also teaches security analysis at Columbia University. He’s been published in professional journals and magazines, including Forbes, Investopedia, Barron's, IBT, and Journal of Financial Research. He’s also the author of many books, including “Business Strategy in a Semiglobal Economy” and “China's Challenge.”