What’s Driving Markets in 2026?

Explore what’s driving growth in 2026. From AI's ongoing impact and healthcare's quiet resurgence to the realities of private credit, discover where risks may be overstated and what investors should watch as markets evolve.

Last Edited by: LPL Research

Last Updated: May 08, 2026

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IN THIS ARTICLE:

Artificial intelligence (AI) has dominated market conversations over the past year, and the story is still unfolding. At the same time, healthcare has quietly regained attention, and concerns around private credit have made headlines. Taken together, these themes point to an investing landscape that rewards selectivity, discipline, and a focus on fundamentals. Here is what investors should know as markets evolve in 2026, drawing on recent insights from LPL Research.

AI Is Still Fueling Technology Growth

AI continues to support strong profits for large technology companies. Firms like Alphabet (GOOG/L), Amazon (AMZN), Microsoft (MSFT), and Meta (META) are seeing increased demand for cloud services and AI offerings, and raised spending plans for data centers, which are needed to power AI tools. These businesses are earning more money as companies and consumers rely more on digital services tied to AI.

Even with these compelling results, many investors remain cautious. There are concerns about how much money companies are spending to build AI systems and how long it will take to see the full benefits. Because of that hesitation, technology stocks have not always risen as much as earnings suggest they could.

LPL Research points out that the outlook for technology companies’ margins and cash flow remain strong, and Wall Street expects earnings to continue to grow despite lingering skepticism. While it is still likely that there will be ups and downs in the AI theme, strong growth and fundamentals suggest the technology sector is positioned well.

Healthcare and Market Ups and Downs

While technology attracts most of the attention, healthcare has quietly become more interesting to many professional investors. The sector has lagged behind others in recent years, which has pushed prices lower. For investors, lower prices can offer opportunity if the underlying businesses remain stable.

Healthcare demand tends to stay steady because people need medical care in all types of economic conditions. That can make certain healthcare companies feel less sensitive to market swings. However, results vary widely depending on the company. Some firms produce consistent income, while others depend on new treatments or approvals that can take time.

Markets may also continue to move up and down more frequently as interest rates, government policy, and global events shift. In these periods, investors often benefit from spreading risk and focusing on companies with reliable earnings.

Clearing Up Confusion Around Private Credit

Private credit has made headlines on concerns around firms limiting selling for investors and potential defaults. In simple terms, private credit involves loans that are not offered through traditional financial intermediaries. Some attention from the press warns this is a red flag.

LPL Research suggests these concerns miss important details, and that private credit is simply experiencing a normal credit cycle. Private credit is not one single type of investment. It includes a wide range of loans with different levels of risk, depending on the lender, how the loans are structured, and the financial strength of the companies borrowing the money.

For most individual investors, private credit is not a core investment. Typically it may play a supporting role within an individual investor's portfolio. Understanding the specifics of the loans matters more than reacting to scary headlines.

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AI, HEALTHCARE, AND PRIVATE CREDIT FAQs

Yes, but the way investors should think about AI has changed. Early on, almost anything connected to AI performed well as excitement grew. Now, markets care more about companies actually turning AI into steady income. LPL Research suggests focusing on fundamentals, which show real earnings growth, clear demand for products, and healthy margins for the tech sector, rather than focusing on volatile headlines.

Healthcare stocks have fallen behind other parts of the market in recent years, which has lowered prices. At the same time, demand for healthcare services does not disappear during economic slowdowns. This combination has made some investors take a fresh look at the sector. That said, healthcare includes many different types of companies, and results can vary widely, so careful selection remains important.

Private credit refers to loans made outside public markets, often directly to businesses. Because these loans are not bought and sold daily, information can be harder to see, and money may be tied up longer. Worries usually come from treating all private credit as the same. In reality, risks vary based on how loans are structured and how carefully they are managed.

Not necessarily, but it is not a fit for everyone. When used, private credit often plays a small supporting role rather than a main investment. Investors should understand how long their money may be locked up and who is responsible for managing risk. It is best approached with clear expectations and professional guidance.

Disclosures

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change. ​

References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results. ​

Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities. ​

All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy. ​

All investing involves risk, including possible loss of principal. ​

US Treasuries may be considered “safe haven” investments but do carry some degree of risk including interest rate, credit, and market risk. Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price. ​

The Standard & Poor’s 500 Index (S&P500) is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.

The PE ratio (price-to-earnings ratio) is a measure of the price paid for a share relative to the annual net income or profit earned by the firm per share. It is a financial ratio used for valuation: a higher PE ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with lower PE ratio. ​

Earnings per share (EPS) is the portion of a company’s profit allocated to each outstanding share of common stock. EPS serves as an indicator of a company’s profitability. Earnings per share is generally considered to be the single most important variable in determining a share’s price. It is also a major component used to calculate the price-to-earnings valuation ratio. ​

Precious metal investing involves greater fluctuation and potential for losses.

The fast price swings in commodities will result in significant volatility in an investor’s holdings. Commodities include increased risks, such as political, economic, and currency instability, and may not be suitable for all investors.​

The NASDAQ Composite Index measures all NASDAQ domestic and non-U.S. based common stocks listed on The NASDAQ Stock Market. The market value, the last sale price multiplied by total shares outstanding, is calculated throughout the trading day, and is related to the total value of the Index. Indexes are unmanaged and cannot be invested in directly.

The MSCI US Broad Market Index captures broad U.S. equity coverage. The index includes 3,204 constituents across large, mid, small and micro capitalizations, about 99% of the U.S. equity universe. Indexes are unmanaged and cannot be invested in directly.

Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price. Private credit carries certain risks — illiquidity, opacity, borrower concentration, and bespoke structures — that distinguish it from corporate bonds and bank loans and complicate its evaluation and oversight.

All index data from FactSet or Bloomberg.

This research material has been prepared by LPL Financial LLC.

Not Insured by FDIC/NCUA or Any Other Government Agency | Not Bank/Credit Union Guaranteed | Not Bank/Credit Union Deposits or Obligations | May Lose Value

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