The valuations of some artificial intelligence companies are approaching those of the dot-com boom. But investors worry that pulling money from today’s market risks future gains.

Exxon Mobil was one of the strongest forces lifting the market. It climbed 2.5% after increasing its forecast for profit over the next five years, thanks in part to strength for its fields in the Permian basin in the United States and off Guyana’s shore.

Explore the latest updates from Wall Street as investors react to mixed stock indexes and Federal Reserve decisions.

Wall Street’s sentiment toward companies associated with artificial intelligence is shifting, and it’s all about two companies: OpenAI is down, and Alphabet Inc. is up.

As the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average have climbed to never-before-seen levels, stock valuations are attempting to follow suit. Wall Street appears set to enter the new year with the second priciest stock market on record -- and history offers investors a dire warning of what's to come.

Analysts warn 2026 could bring a sharp US market correction as high valuations, Fed uncertainty and tech bubbles grow, risking a global shock hitting India too.

“The market continues to [hit] record highs on the back of strong earnings and easing U.S.–China trade tensions,” said Mark Hackett, chief market strategist at Nationwide, who calls the current state of “steady growth without irrational exuberance” a ”Goldilocks environment.”

Most stocks were falling on Wall Street, but Warner Bros. Discovery jumped to one of the market’s biggest gains.

That represents around 20% upside from today's levels, which would be an excellent one-year return for TSMC. The long-term market average performance is about 10%, so this would essentially outperform the stock market by double. This makes it a stock investors should be buying hand over fist entering 2026, but are the analysts right on this one?

TOKYO, - Japan's Nikkei share average edged lower on Tuesday, tracking overnight declines on Wall Street, but gains in chip-sector stocks limited losses.

Notably, Warren Buffett’s Berkshire Hathaway Inc. trimmed its Apple stake by 15% in the third quarter, while building a position in the latest hot AI play, Alphabet Inc. However, Apple remains the biggest position in Berkshire’s equity portfolio by market value.