What’s Changing in Markets and What it May Mean for You

Markets are shifting as agriculture gains attention, AI reshapes bond markets, and global factors drive volatility, offering new opportunities and risks for investors.

Last Edited by: LPL Research

Last Updated: May 28, 2026

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IN THIS ARTICLE:

Many trends are circulating in the market right now, including growing interest in agriculture and the impact of artificial intelligence (AI) on bond markets.

In simple terms, here’s a look at the trends that are drawing attention and why it matters to you.

Agriculture Is Starting to Stand Out

When most people think about commodities, they think of oil or gold. But agriculture, things like crops and food production, is starting to get more attention after being overlooked for years.

Markets tend to move in long cycles. Commodities experienced a so-called ‘super-cycle’ early in the 21st century, then slowed down for roughly eight years. Now, a new cycle may be starting, and agriculture is showing early signs of strength.

One reason is supply pressure. It is becoming harder and more expensive to produce crops because of factors like fertilizer shortages and supply disruptions broadly tied to the closure of the Strait of Hormuz. When it costs more to produce food or supply is limited, prices can move higher.

This does not mean agriculture will suddenly outperform everything else. But it does mean the backdrop for agricultural commodities is growing more constructive.

AI Is Changing More Than Just Stocks

AI has mostly been talked about in relation to big tech stocks, but it is also changing the bond market in a big way.

Companies are spending a lot of money to build the infrastructure needed for AI, such as data centers. To pay for it, many are borrowing money by issuing bonds. This means there are now more bonds available from large, well-known companies.

For investors, this creates a mix of opportunity and change.

  • There are more investment options in bonds from financially stable companies
  • Bond portfolios and benchmarks may now have more exposure to technology
  • The large supply of new bonds has caused the fixed income tech sector to underperform on issuance concerns

This wave of issuance is reshaping the investment-grade bond universe. This provides both challenges, such as modestly rising concentration risk, and compelling opportunities for those investors equipped to navigate potentially varying returns.

How to Stay Steady Through Market Ups and Downs

With so many changes happening at once, markets can feel unpredictable. Prices can move up and down quickly, and headlines can make things seem more dramatic than they are.

One way to stay grounded is to focus on longer-term trends instead of daily movements. Markets often send mixed signals, especially when inflation, global events, and new technology shifts are all happening at the same time.

Instead of reacting to every move, it can help to:

  • Look at where markets are heading over time
  • Stay consistent with your investing approach
  • Avoid making decisions based on short-term fear or excitement

This does not mean ignoring market changes. It means putting them into context so you can make more thoughtful decisions.

What This Means for You

Some noteworthy trends include:

  • Agriculture could become a more meaningful opportunity after years of lagging behind
  • AI is shaping not just stocks, but also how companies borrow and grow
  • Market ups and downs are normal, especially during times of change

You do not need to overhaul your investment strategy because of these shifts. But staying informed can help you make smarter decisions and spot opportunities as they develop.

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AGRICULTURE, AI, AND CHANGING MARKETS FAQs

Agriculture is getting more attention because it is becoming harder and more expensive to produce food. Issues like fertilizer shortages stemming from supply chain disruptions can limit how much farmers are able to grow. At the same time, demand for food does not go away. When supply is tight and demand stays steady, prices can rise. For investors, that can create opportunities in areas tied to farming, crops, and food production. It does not guarantee strong returns, but it does make agriculture a space worth paying closer attention to as part of a balanced portfolio.

Not necessarily. Many large companies are borrowing money to invest in AI because it requires significant upfront spending on infrastructure like data centers. This type of borrowing does not automatically mean financial trouble. In many cases, these companies are still in a strong position and are investing in long-term growth. For investors, the bigger takeaway is that bond markets may start to include more technology exposure, which can slightly change how bond portfolios behave over time.

The most effective approach is to stay focused on your long-term goals and avoid reacting to every short-term market move. Markets naturally go through periods of ups and downs, especially during times of change. Instead of making large, sudden shifts, it often helps to review your investments periodically and make small, thoughtful adjustments if needed. Staying diversified across different types of investments can also help manage risk while still allowing you to benefit from opportunities as they develop.

Disclosures

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change. ​

References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results. ​

Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities. ​

All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy. ​

All investing involves risk, including possible loss of principal. ​

US Treasuries may be considered “safe haven” investments but do carry some degree of risk including interest rate, credit, and market risk. Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price. ​

The Standard & Poor’s 500 Index (S&P500) is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.

The PE ratio (price-to-earnings ratio) is a measure of the price paid for a share relative to the annual net income or profit earned by the firm per share. It is a financial ratio used for valuation: a higher PE ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with lower PE ratio. ​

Earnings per share (EPS) is the portion of a company’s profit allocated to each outstanding share of common stock. EPS serves as an indicator of a company’s profitability. Earnings per share is generally considered to be the single most important variable in determining a share’s price. It is also a major component used to calculate the price-to-earnings valuation ratio. ​

Precious metal investing involves greater fluctuation and potential for losses.

The fast price swings in commodities will result in significant volatility in an investor’s holdings. Commodities include increased risks, such as political, economic, and currency instability, and may not be suitable for all investors.​

The NASDAQ Composite Index measures all NASDAQ domestic and non-U.S. based common stocks listed on The NASDAQ Stock Market. The market value, the last sale price multiplied by total shares outstanding, is calculated throughout the trading day, and is related to the total value of the Index. Indexes are unmanaged and cannot be invested in directly.

The MSCI US Broad Market Index captures broad U.S. equity coverage. The index includes 3,204 constituents across large, mid, small and micro capitalizations, about 99% of the U.S. equity universe. Indexes are unmanaged and cannot be invested in directly.

Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price. Private credit carries certain risks — illiquidity, opacity, borrower concentration, and bespoke structures — that distinguish it from corporate bonds and bank loans and complicate its evaluation and oversight.

All index data from FactSet or Bloomberg.

This research material has been prepared by LPL Financial LLC.

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