AI Euphoria Continues to Outweigh Geopolitical Risks, According to DWS

DWS /

29-06-2026

DWS argues that artificial intelligence remains the dominant force driving financial markets, with AI investment and earnings growth continuing to overshadow concerns over inflation, higher energy prices and geopolitical tensions.

The firm expects global equity markets to remain supported primarily by earnings growth rather than higher valuations, with AI infrastructure spending continuing to benefit semiconductor companies, utilities and U.S. technology leaders.
DWS forecasts the S&P 500 could reach 8,200 over the next 12 months while warning that markets face increasing divergence between AI beneficiaries and sectors more exposed to higher interest rates, energy costs and slower economic growth.
Beyond equities, the report sees infrastructure and utilities benefiting from surging electricity demand driven by AI data centres, while expecting gold to remain supported by central-bank buying and a weaker U.S. dollar.

Read the full report for DWS's latest outlook on AI, equities, bonds, commodities and global asset allocation.