April saw the S&P 500's best month since 2020, rising 10.5%. The S&P 500’s lowest level year to date was March 30th, down -7.33%. At the end of April, the S&P 500 was up 5.31% year to date, a return of +13.6%, shown in the chart below:
With the quick surge in stocks and the seemingly relentless performance of semiconductor and artificial intelligence (AI) stocks, Morningstar reviewed how this compares to the 1999 dot-com bubble: Echoes of 1999 in the Latest AI Stock Rally? | Morningstar
First, Morningstar set the stage for where the U.S. stock market is now since the end of 2024 through May 8, 2026:
- 63 stocks have 100%+ returns
- 18 have 200%+ returns
- 8 have 300%+ returns
- 9 of the top 10 stocks are AI-related
- In 2026, 12 stocks have doubled or more, with 11 of those AI-related
When Morningstar looked at the comparison of one-year returns for U.S. semiconductor stocks in 1999 and 2000, they were up 157%. Through May 14, 2026, the trailing one-year return for U.S. semiconductor stocks was up 101%. Morningstar found some returns and valuations for these stocks are justified and backed by strong earnings and fundamentals. They do find some stocks in the sector have seen exuberant price increases, but do not feel this is a 1999-2000 moment overall due to the strong earnings.
Investors have also been restrained and are not fully chasing stock markets, adding to fixed income funds and ETFs throughout the first quarter of 2026, nearly double the amount into equities:
AI is Changing How Professionals are Educated: Colleges and universities are finding it necessary to adapt their curriculum to incorporate AI. Particularly in the accounting profession, where one study found the profession to be the most exposed to AI. Physical textbooks are being replaced with tools to match the needs of employers, and professors are being forced to update their 20-year-old syllabus. (I remember myself returning to the rigors of education and launching into the CFP® curriculum – I was so dismayed when I logged into the online class, and the professor was using handwritten overhead projector sheets. The interest rate assumptions were 15%+, so you knew they had to be from the 1980s 😊). In one case, students interview AI agents that simulate “unhelpful” or “dumb” clients during an audit. State standards for CPAs are also changing, with more than 40 states changing their licensing from 150 credit hours to 120 credit hours. Overall, AI is reshaping many industries, hopefully for the better, by improving accuracy and reliability. The Academic Scramble to Prepare Future Accountants for AI | WSJ
Investments/Financial Planning Corner:
Artificial intelligence is also entering the financial services sector, with OpenAI launching Plaid to link accounts into ChatGPT. It will help users aggregate their accounts and loans and offer insights or credit card recommendations to users. It will not offer financial advice or take action on behalf of users. OpenAI Wants to Give Users Personal Finance Insights | Barron's
Largely, getting financial advice from AI is already happening: Half of Americans Get Financial Advice From AI, But Is It Any Good? The findings, part of an MIT professor's study, find that AI financial advice is largely as good as the questions you pose to it. The study tested between individuals with high and low financial literacy. The better and more targeted the question posed to AI, the smarter the response from AI. The other finding is that biases exist, as they exist in all algorithms. Recommendations to women were more conservative than the recommendations to men, even when identical questions were asked. Human advisors certainly contain biases themselves, but it seems AI has not solved that yet.
Quick Hits:
- Mexico City is one of my favorite destinations (maybe because I proposed to my wife there and she said yes), and it seems to be catching on: The cool capital with the best street food in North America
- We’ll be taking a visit to some of these art walks this summer: 9 Maine art walks to stroll through this summer
- We’ve started our garden this year (just remember the sunscreen): Why gardening is great exercise for both body and mind | RHS Gardening
- Jeff Goldblum offers some advice in a new song with Charlie Puth: YouTube
- Fans of Maine Cabin Masters can stay at their inn (and see my overgrown lawn in Monmouth – a quarter mile away): The 'Maine Cabin Masters' couple is opening an inn in Summer 2026 | Boston Globe
Quotes: A few from Conan O’Brien: “My favorite comedy is comedy where nothing is achieved, and there is no point.”
“Please do not be cynical. I hate cynicism – it's my least favorite quality, and it doesn't lead anywhere. Nobody in life gets exactly what they thought they were going to get. But if you work really hard and you're kind, amazing things will happen.”
Thank you for reading RSWA Financial Advisor Insights! We welcome feedback, and please forward this to a friend! Be well, take care, and stay safe!
