As we conclude 2025, the S&P 500 has completed a remarkable three-year run of double-digit gains. This video breaks down the primary drivers behind this momentum—including artificial intelligence and fiscal policy—and looks ahead to the challenges and opportunities facing retail traders in 2026. We explore the potential impact of tax relief and deregulation against the backdrop of a cooling labor market. A key focus for investors is whether the current slowdown in hiring is a sign of economic contraction or a result of AI-driven productivity gains. Understanding this distinction is vital for anticipating Federal Reserve interest rate decisions and overall market direction. Additionally, we analyze the current inflation landscape and the implications of the latest 2.7% CPI reading.