Here's what will really drive the stock market higher

Transcript:

Caroline Woods: But what is it that drives this market higher from here. Because to your point, Yeah, consistently hitting new highs. It is what's going to power it higher. Is it just going to continue to be I or is it going to be the Fed continuing to cut rates. Is it going to be a trade deal with China. The market was at new highs, despite the fact that there was a whole bunch of uncertainty and noise there. Is this going to be a buy the rumor kind of sell the news type of thing, or is it going to be a catalyst?

Jessica Inskip: It has to be a combination of all those things, and all of those could be a catalyst. But we need an easing Fed to spur more. AI that's important. We definitely don't want volatility that has to do with tariffs. However, the market seems to be shaking that off. More to your point. So I do think it is AI oriented. But I do think fiscal policy. Now is in this place where we can do more. I'm trying to word that in the right way, as in, it is an environment conducive for regulatory changes. And we see this with the clarity act. So artificial intelligence is even expanding. I want to rename the rally actually from the AI rally to the efficiency boom because of the tokenization and stablecoins and the access that's coming to our public markets. And I think that actually will be the next leg. But it's an expansion of AI, not solely AI.