The stock market has been climbing steadily, with transportation stocks helping lead the way. As artificial intelligence rapidly reshapes industries, investors are asking whether the rally still has room to run.
Since President Trump returned to office, markets have posted strong gains, with AI emerging as one of the biggest drivers.
Brett Alexander Hurt, CEO and founder of Love Conquers Fear, said the technology is opening doors that previously did not exist for companies.
"I think the bigger part of the narrative is what AI is going to allow companies to do that they weren't able to do previously," Hurt said.
Hurt said the companies seeing the biggest gains are the ones using AI to grow into new markets — not simply cutting costs.
"That efficiency for the smartest companies, it is going to allow them to do more. And reach more markets, not just be more efficient," Hurt said.
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Experts say transportation remains especially sensitive to inflation and interest rates as the Federal Reserve considers its next move.
Matt Schaller, an adviser at Moneta, said a surprise inflation reading could prompt the Fed to act sooner or more aggressively than anticipated.
"If, for example, we see a surprise print and inflation is higher than we expect, it might cause the Federal Reserve to raise rates sooner than expected or more than expected. And anytime that happens, it's to stimulate. It's to cool off the overall economy," Schaller said.
For investors trying to decide whether to jump into the market now, both experts say long-term planning matters more than chasing trends.
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"So we're going to be advocating to keep a diversified basket of stocks, including transportation. But rebalancing if you see certain pockets of the market getting overweight or underweight," Schaller said.
Hurt also said AI tools themselves can help everyday investors research companies more effectively.
"And if you use the thinking mode, you will have a PhD level assistant. That is able to go and research," Hurt said.
Analysts say the market's next move could depend on whether companies can turn AI investments into lasting profits — while navigating inflation, interest rates, and a changing economy.
