Institutions expect U.S. stocks to plunge 21% next year: "The AI-driven stock market boom may be about to burst."

According to a report on the official website of Fortune magazine on the 13th local time, analysts say the U.S. stock market is in the late stage of a bubble and is bound to plunge 21% next year, while U.S. Treasury yields breaking through 5% will mark a new era of monetary tightening. Investors should enjoy the final months of 2026 while they still can, because the AI-driven stock market boom is about to burst. According to the report, James Reilly, senior market economist at the well-known British economic research institution Capital Economics, reiterated his previous forecast: the S&P 500 index will close at 8,250 points by the end of this year, up 7.7% from its September 11 close, and will then plunge 21% to 6,500 points by the end of 2027.