Why did the stock market soar in the first half of 2026? Experts explain - AOL

The stock market surged in the first half of 2026 as investors largely shrugged off regional conflict in the Middle East, a historic oil shortage, and renewed worries about an AI bubble. The Dow Jones Industrial Average is on track for its best first-half performance since 2021, rising 8.9% since the year began and passing 52,000. The S&P 500 gained 9.4%, while the Nasdaq climbed 12.5%. Analysts cited a banner year for corporate earnings supported by a resilient economy and consumer spending despite higher prices. The U.S. economy grew solidly in early 2026, with employment averaging about 114,000 jobs per month from January to May. Strong AI chip demand also helped, with Micron up 306% and Sandisk up 830% this year.