AI Bubble Fears Meet Record Highs: S&P 500 Near 7,000 as Big Tech’s AI Spending Surge Dominates December 26, 2025
Wall Street is closing out 2025 at record levels—and doing it while a louder debate simmers about whether artificial intelligence is building a durable foundation for the next decade of growth, or inflating the kind of expectations that tend to end in painful repricing. On Friday, December 26, U.S. equities returned from the Christmas break in thin trading conditions with investors watching two things at once: whether the year-end “Santa Claus rally” has enough momentum to push benchmarks to fresh milestones, and whether the AI trade that powered much of the market’s gains can keep delivering without buckling under the