The stock market is having a good year despite headwinds from sticky inflation and high interest rates. The benchmark S 500 (SNPINDEX: ^GSPC) has climbed 18%, notching more than three dozen record highs in the process.

One reason for that momentum is excitement about artificial intelligence (AI). Chipmaker Nvidia accounts for nearly one-fifth of the gains in the S 500, and the Magnificent Seven are collectively responsible for nearly 60% of the gains. Another reason for the market's upward momentum is that most economists expect the Federal Reserve to achieve a soft landing, a scenario in which policymakers bring inflation back to target without causing a recession.

Here's how JPMorgan Chase analysts summarized the situation in their mid-year outlook: "The economy is stronger than you think. AI is just starting. Stocks could move higher. Embrace the rally."

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Source Fool.com