That's music to the ears of Vistra, which cheered the market by acquiring more nuclear power capacity in 2024. Investors eagerly await updates on whether it will sign a deal with a cloud services company, although news of a fire at its California battery plant briefly sent shares sharply lower on Jan. 17.

Artificial intelligence (AI) was a market-driving theme last year, with AI stocks helping the S&P 500, the Nasdaq, and the Dow Jones Industrial Average each soar in the double digits. Companies selling AI tools and services saw earnings climb -- and investors piled into these players.

Today, history offers us reason to be excited about 2025, suggesting that the S&P 500 is likely to soar as it's done in previous periods. But even if it doesn't, by taking the steps I've mentioned, your portfolio still could advance this year -- and most importantly, over the long run.

The market is coming off two superb years, 2023 and 2024, when the S&P 500 climbed over 53% in total, mainly thanks to tech and artificial intelligence (AI) stocks. While 2025 has started off with some turbulence,

Over a third of the S&P 500's value is now concentrated in the "Mag 7" — a handful of huge companies that sell AI technology.

The S&P 500 posted its biggest comeback since September as Wall Street shrugged off some weakness in stocks linked to the artificial intelligence trade. The market benchmark rose 0.2% after trading down 0.

Semiconductor stocks are the biggest S&P 500 gainers in Thursday trading, fueled by upbeat commentary from Taiwan Semiconductor Manufacturing Co. on the state of the artificial-intelligence market. Chip-equipment stocks KLA Corp.

Returning 25% in 2024, the S&P 500 delivered a record-breaking year for stock market investors. A resilient global economy coupled with interest rate cuts by the Federal Reserve continues to fuel optimism toward a strong outlook.

Artificial intelligence (AI) was a market-driving theme last year, with AI stocks helping the S&P 500, the Nasdaq, and the Dow Jones Industrial Average each soar in the double digits.

Artificial intelligence (AI) has become a driving force of innovation and investment, reshaping industries and redefining growth strategies. In 2024, AI stocks dominated Wall Street, delivering stellar returns as companies embraced its transformative potential.

The S&P 500's recent growth, driven by AI optimism and productivity gains, contrasts extremely extended valuations, creating a brittle market outlook for 2025. We foresee two scenarios: continued momentum leading to 10% to 20% positive returns, or a quick, significant downturn if mega cap earnings begin to change direction.

The biggest US tech stocks have enjoyed an earnings bonanza in the past two years, leading to their significant outperformance of the broader market.