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Global markets are showing signs of renewed confidence after weeks of uncertainty from the US government shutdown and fears of an “AI bubble.”
Following a stretch of selling pressure, investor sentiment has shown signs of recovery as fears ease and optimism returns to equity markets.
New forecasts also point toward steadier growth, even as traders keep a close eye on shifting global trade dynamics and policy decisions that could shape the final months of the year.
UBS Sees S&P 500 Hitting 7,500 by 2026
UBS has raised its forecast for the S&P 500 and sees the index reaching 7,500 by the end of 2026. The investment bank highlighted strong earnings as the main reason for the upgraded forecast, with growth expected to come mainly from the “Magnificent Seven” stocks, according to UBS. ⁽¹⁾
Despite valuation fears, AI momentum has kept driving the stock market’s growth. UBS now expects gains to spread across to other sectors by mid-2026, calling this a broadening bull market.
It compares AI spending today to the 1990s tech boom, which boosted productivity for years. In the first half of 2025, AI investments added 1.4% to US GDP growth when including software and research. ⁽²⁾
AMD CEO Lisa said that the chipmaker’s overall revenue growth could rise up to 35% per year over the next five years, driven by significant demand for AI chips. ⁽³⁾
She also said that much of that demand would be captured by the company’s AI data center business, which it expects to grow at about 80% per year over the same timeframe. ⁽⁴⁾
While major tech companies are spending hundreds of billions of dollars on GPU chips to build and power artificial intelligence applications like OpenAI’s ChatGPT, they are also looking for alternatives to increase capacity and reduce costs.
SoftBank Cashes Out Nvidia to Double Down on AI
SoftBank has sold its full stake in Nvidia for $5.83 billion. The Japanese firm sold 32.1 million shares to gain access to cash for new AI investments. The bank also sold some of its stake in T-Mobile for $9.17 billion. CFO Goto stated that this asset monetization keeps the firm resilient while funding massive investments. ⁽⁵⁾
The sales helped SoftBank’s profit double in Q2. Its Vision Fund posted a $19 billion gain, boosted by stakes in OpenAI. SoftBank first invested in OpenAI in September 2024, valued at $500 billion.
The fund targets the full AI chain, from chips to robots. SoftBank ties remain with Nvidia through projects like the $500 billion Stargate data centers in the US. ⁽⁶⁾
Trump Pushes Trade Deals with India and Switzerland
US growth is relying on AI, but with tariffs come risks. UBS warned that new tariffs could raise prices and cause a slowdown in exports.
US President Trump announced a possible reduced tariff rate on Switzerland, matching the EU’s level of 15%. Trump said on November 10 that officials are working on this to help Switzerland, a “good ally.” A final agreement could come by the end of the week. ⁽⁷⁾
Trump also said that the US-India deal may be completed, which could strengthen economic and security ties, expand energy exports and boost investment. He also appointed Sergio Gor as the new ambassador to India, noting during the swearing-in ceremony that Gor’s mission is focused on trade, energy and defense cooperation. ⁽⁸⁾
The Bottom Line
AI continues to act as the driving force behind market optimism, with earnings growth and innovation potentially setting the pace for the years ahead.
UBS’s forecast for the S&P 500 indicates how AI investment has become a factor in global growth. Yet, trade policy remains a risk as tariff changes and new deals could interfere and impact growth momentum.
