December 3, 2025: Need More Power
As 2025 comes to a close, we are already in the process of looking ahead to what will drive the economy in 2026. After strong returns year-to-date, many investors are wondering “what’s next?” and whether this strong performance can continue.
Figure 1: AI Implementation1
AI Contribution to society is still early stages. The AI narrative has dominated markets for the last couple of years and many are concerned about how these new technologies might impact the employment market. Figure 1 above highlights a timeline of some of the greatest technological innovations in our lifetimes and how those events have contributed to labor productivity. This leaves room for a lot of opportunity as we learn how we can implement these technologies to make our lives better.
Figure 2: US Power Demand is Spiking with AI and New Data Center Construction2
What we’re watching. At this point in time, the AI story raises a lot of unanswered questions. One of the largest issues we will need to solve is how we will power these technologies. Figure 2 above highlights the current electricity and power shortfall based on what experts are thinking will be required to operate things like data centers. The bottom line is we are going to need a lot more power.
1JPMorgan Guide to the Markets – Dec 2025, 2TCW Group – Aug 2025
For the week of November 24th, the US economic calendar features several key reports:
Tuesday - Remarks from the Federal Reserve Chair
Wednesday - ADP Employment Report, Personal Income and Outlays
Friday - Consumer Sentiment
