Powell’s Warning: 2026’s Stock Market Peril

Stephanie Aliaga from JPMorgan noted AI capex added 1.1% to GDP, outpacing the consumer’s tired shuffle. The S&P 500’s monthly gains since April? A gamble on resilience, but the odds were stacked against it. Powell, that sly fox, warned equity prices were “fairly highly valued”-a polite way of saying they were stretched thin.

![The study demonstrates that test Mean Squared Error (testMSE) scales predictably with training set size ([latex]D_D[/latex]), where [latex]D_D[/latex] represents the number of unique geometry-flow snapshots used as graph-based data, and this scaling behavior differs significantly across models of varying sizes.](https://arxiv.org/html/2512.20941v1/figs/scaling/mean-error-all-models.png)


