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So far in 2026, Wall Street equity investors have navigated an extremely complex landscape marked by macroeconomic forces, geopolitical pressures, and sector-specific concerns. Inflation has remained stubborn, hovering above the Federal Reserve’s long-term target. Disruptions in key transit areas like the Strait of Hormuz have led to an energy shock, with oil prices jumping 75% in 2026 alone.
Recently appointed Fed Chair Kevin Warsh has been forced to tighten monetary policy. Artificial intelligence, the market’s fastest-growing area, has been faced with constant fear, uncertainty, and doubt about AI safety and CAPEX scrutiny. Meanwhile, the labor market is softening, and the upcoming midterm election adds another layer of legislative uncertainty.
The Power of Price Action vs. News Analysis
In my more than two decades of investing experience, I have learned that the stock market is the master manipulator. Most amateur investors focus too much on news headlines. However, analyzing news headlines alone is a sure-fire way to misinterpret the stock market. Rather than viewing news headlines in a vacuum, investors should focus on the market’s price action in relation to the news.
For instance, if listed all the 2026 uncertainties to someone who does not follow the equity market, they would most likely guess that stocks are in a major correction. The fact is that the stock market has had the proverbial kitchen sink thrown at it, and the S&P 500 Index is just 2% off its all-time highs. Remember, stocks tend to climb the “Wall of Worry.”
Retail Investor Sentiment Is in the Gutter
The American Association of Individual Investors (AAII) survey is a widely followed weekly poll that measures the percentage of individual retail investors who feel bullish, bearish, or neutral about the stock market over the next six months. Although the major equity indexes are within a hair of their highs, investor sentiment is extraordinarily negative. In fact, the latest AAII Survey shows the fewest bulls and most bears in over a year.
As George Patton once said, “If everyone is thinking alike, then somebody isn’t thinking.” Historical data backs up this claim. Since the late 1980s, when AAII bulls have fallen below 29% with the S&P 500 Index within 10% of all-time highs, stocks have been higher 100% of the time one month later (9 instances)
AI Safety Concerns Are Overblown
Recently, AI stocks corrected after OpenAI CEO Sam Altman and Anthropic CEO Dario Amodei sounded the alarm on AI safety concerns and called for regulation. Despite the fear-mongering from AI leaders, it’s critical that investors read into what these CEOs are actually doing – not what they are saying. David Sacks, former “AI Czar” for the Trump Administration, made an astute observation:
“Dario (Anthropic CEO) has written that we need to “pace the frontier,” and Sam Altman (OpenAI CEO) has agreed. People may be surprised by my response: go ahead. You guys are the frontier. By any reasonable metric – market share, revenue growth, model capability – the two of you have a duopoly on frontier intelligence.”
Despite the alarmism, the top two AI CEOs are not slowing down. Earlier this month, Anthropic inked a $13.7 billion compute agreement while OpenAI held early talks with investors about another private funding round. Later, NVIDIA CEO Jensen Huang, the most important voice in AI, said:
“The fact that this is going to be the end of humanity – it’s complete nonsense. The fact that this is going to destroy half of the American jobs is complete nonsense.”
Mid-term Election Seasonality Suggests Better Days are Ahead
According to historical market data, the months leading up to mid-term elections are the worst time to own stocks in the four-year election cycle. However, after a choppy and frustrating summer market for investors, the good news is that seasonality suggests stocks tend to bottom around now and rally strongly into year-end.
Thursday, stocks across a variety of sectors broke out including Advanced Micro Devices, Tempus AI, Moderna, Super Micro Computer and Aya Gold & Silver Inc.
Bottom Line
While macroeconomic headwinds, geopolitical energy shocks, and relentless media fear-mongering might suggest a market correction is overdue, the resilience of stock price action tells a different story.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: NVIDIA, Advanced Micro Devices, Tempus, Moderna, Super Micro Computer and Aya Gold & Silver
For Immediate Release
Chicago, IL – September 18, 2026 – Today, Zacks Investment Ideas features NVIDIA (NVDA - Free Report) , Advanced Micro Devices (AMD - Free Report) , Tempus AI (TEM - Free Report) , Moderna (MRNA - Free Report) , Super Micro Computer (SMCI - Free Report) and Aya Gold & Silver Inc (AYA).
Will 2026 Doom and Gloom Lead to Opportunity?
2026 Has Been Full of Uncertainty
So far in 2026, Wall Street equity investors have navigated an extremely complex landscape marked by macroeconomic forces, geopolitical pressures, and sector-specific concerns. Inflation has remained stubborn, hovering above the Federal Reserve’s long-term target. Disruptions in key transit areas like the Strait of Hormuz have led to an energy shock, with oil prices jumping 75% in 2026 alone.
Recently appointed Fed Chair Kevin Warsh has been forced to tighten monetary policy. Artificial intelligence, the market’s fastest-growing area, has been faced with constant fear, uncertainty, and doubt about AI safety and CAPEX scrutiny. Meanwhile, the labor market is softening, and the upcoming midterm election adds another layer of legislative uncertainty.
The Power of Price Action vs. News Analysis
In my more than two decades of investing experience, I have learned that the stock market is the master manipulator. Most amateur investors focus too much on news headlines. However, analyzing news headlines alone is a sure-fire way to misinterpret the stock market. Rather than viewing news headlines in a vacuum, investors should focus on the market’s price action in relation to the news.
For instance, if listed all the 2026 uncertainties to someone who does not follow the equity market, they would most likely guess that stocks are in a major correction. The fact is that the stock market has had the proverbial kitchen sink thrown at it, and the S&P 500 Index is just 2% off its all-time highs. Remember, stocks tend to climb the “Wall of Worry.”
Retail Investor Sentiment Is in the Gutter
The American Association of Individual Investors (AAII) survey is a widely followed weekly poll that measures the percentage of individual retail investors who feel bullish, bearish, or neutral about the stock market over the next six months. Although the major equity indexes are within a hair of their highs, investor sentiment is extraordinarily negative. In fact, the latest AAII Survey shows the fewest bulls and most bears in over a year.
As George Patton once said, “If everyone is thinking alike, then somebody isn’t thinking.” Historical data backs up this claim. Since the late 1980s, when AAII bulls have fallen below 29% with the S&P 500 Index within 10% of all-time highs, stocks have been higher 100% of the time one month later (9 instances)
AI Safety Concerns Are Overblown
Recently, AI stocks corrected after OpenAI CEO Sam Altman and Anthropic CEO Dario Amodei sounded the alarm on AI safety concerns and called for regulation. Despite the fear-mongering from AI leaders, it’s critical that investors read into what these CEOs are actually doing – not what they are saying. David Sacks, former “AI Czar” for the Trump Administration, made an astute observation:
“Dario (Anthropic CEO) has written that we need to “pace the frontier,” and Sam Altman (OpenAI CEO) has agreed. People may be surprised by my response: go ahead. You guys are the frontier. By any reasonable metric – market share, revenue growth, model capability – the two of you have a duopoly on frontier intelligence.”
Despite the alarmism, the top two AI CEOs are not slowing down. Earlier this month, Anthropic inked a $13.7 billion compute agreement while OpenAI held early talks with investors about another private funding round. Later, NVIDIA CEO Jensen Huang, the most important voice in AI, said:
“The fact that this is going to be the end of humanity – it’s complete nonsense. The fact that this is going to destroy half of the American jobs is complete nonsense.”
Mid-term Election Seasonality Suggests Better Days are Ahead
According to historical market data, the months leading up to mid-term elections are the worst time to own stocks in the four-year election cycle. However, after a choppy and frustrating summer market for investors, the good news is that seasonality suggests stocks tend to bottom around now and rally strongly into year-end.
Thursday, stocks across a variety of sectors broke out including Advanced Micro Devices, Tempus AI, Moderna, Super Micro Computer and Aya Gold & Silver Inc.
Bottom Line
While macroeconomic headwinds, geopolitical energy shocks, and relentless media fear-mongering might suggest a market correction is overdue, the resilience of stock price action tells a different story.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.