Wall Street predicts the market will be "on the brink" in 2026, with the AI bubble and labor market becoming key concerns

According to TechFlow, on December 24, the 2026 market outlook from 15 major Wall Street investment banks was summarized by AI as "precarious." Although stimulus plans such as the "Big and Beautiful Act" will drive the overall market positively, investors face multiple challenges. JPMorgan warns that investment in the AI sector has soared from $150 billion in 2023 to a possible $500 billion by 2026, raising the risk of a bubble. Both Deutsche Bank and Goldman Sachs point out that the vulnerability of the U.S. labor market could trigger a recession. Bank of America expects the core inflation rate to remain at 2.8% by the end of 2026, well above the 2% target, which may affect the Federal Reserve's rate-cutting cycle. Meanwhile, under the K-shaped economic pattern, the financial situation of low-income households is particularly fragile, and consumer polarization is evident.