US economy in 'soft patch' heading into 2026: The biggest themes
Affected assets and topics
Why it matters
Investors are concerned about the US economy heading into 2026 due to potential inflation, rising unemployment, and the AI bubble bursting, according to Morgan Stanley's Chief Global Economist Seth Carpenter.
Expected market reaction
Market impact analysis based on bearish sentiment with 73% confidence.
Evidence trail
Evidence
AI provenance
Technical identifiers
- Provider tag
- groq-llama-3.1-8b-instant
- Analysis version
- groq-llama-3.1-8b-instant
- Article id
- 23566
Original source
Investors are looking ahead to 2026 and how three major themes may impact markets (^DJI, ^IXIC, ^GSPC) and the US economy: inflation, rising unemployment, and whether the shoe will drop on the supposed AI bubble. Morgan Stanley Chief Global Economist Seth Carpenter comes on Market Catalysts to discuss the biggest themes and headwinds surrounding the US economy as 2025 draws to a close. To watch more expert insights and analysis on the latest market action, check out more Market Catalysts.
Read the full article on Yahoo Finance
Original article published by Yahoo Finance on December 17, 2025. Analysis and insights provided by AnalystMarkets AI.
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