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After nearly a decade building AI systems daily, here's what the endless bubble debates are missing. Both bulls and bears are confusing bad applications with transformative technology.
The U.S. stock market closed 2025 with a 16.39% S&P 500 return, marking three consecutive years of double-digit gains. However, beneath the headline numbers lies a complex story of dramatic sector dispersion, Magnificent Seven divergence reaching 60 percentage points, and unprecedented data storage stock returns exceeding 500%. This comprehensive analysis examines the AI Deployment Phase transition, Federal Reserve rate cuts impact, sector-by-sector performance across all 11 S&P sectors, the small-cap renaissance, and identifies the year's spectacular winners and devastating losers with database-verified year-end data.
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