2026 Global Market Outlook: Minds, Machines, and Market Shifts

AI is driving real change, but bubble concerns are growing. Investors must balance exposure to AI with broader opportunities and enduring risks in 2026. 

What’s ahead for markets in 2026
Balancing AI winners with broader opportunities and enduring risks 
AI is powering measurable change—and this will continue in 2026. But rapid capital deployment has led to stretched valuations in AI sectors, raising concerns about speculative bubbles and sustainability. Investors must balance excitement with disciplined analysis and risk management.

Meanwhile, the world continues to grapple with non-AI forces. Inflation remains stubborn in many developed economies, growth trajectories are diverging and geopolitical uncertainty—from trade tensions to the war in Ukraine—is adding further complexity to the global outlook.

Navigating this environment will require balancing exposure to enduring AI leaders with emerging opportunities in cyclical and international markets—while remaining vigilant to persistent macro risks. The age of speculation is giving way to real-world results, but investors must be mindful that old challenges—valuation, inflation, and geopolitical uncertainty—remain firmly in play.

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T. Rowe Price (including T. Rowe Price Group, Inc. and its affiliates) and its associates do not provide legal or tax advice.  Any tax-related discussion contained in this e-mail, including any attachments, is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding any tax penalties or (ii) promoting, marketing, or recommending to any other party any transaction or matter addressed herein.  Please consult your independent legal counsel and/or professional tax advisor regarding any legal or tax issues raised in this e-mail.
The contents of this e-mail and any attachments are intended solely for the use of the named addressee(s) and may contain confidential and/or privileged information. Any unauthorized use, copying, disclosure, or distribution of the contents of this e-mail is strictly prohibited by the sender and may be unlawful. If you are not the intended recipient, please notify the sender immediately and delete this e-mail.
Residents of Quebec may request a French translation of this email and its attachments. Please contactCanadaTranslationRequests@troweprice.com.Les résidents du Québec peuvent demander une traduction française de ce courriel et de ses pièces jointes. S'il vous plaît contactezCanadaTranslationRequests@troweprice.com.

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