'We're pretty upbeat': Stock market experts expect continued growth, bolstered by AI, in 2026
Wall Street analysts expect growth in both the economy and corporate earnings next year, both of which bode well for stocks.
TL;DR
- The S&P 500 has seen strong returns in 2025, marking the third consecutive year of double-digit growth.
- Analysts are optimistic about the U.S. stock market in 2026, expecting continued positive performance.
- Corporate earnings are projected to grow significantly in 2026, with S&P 500 companies expected to boost earnings by 15.5%.
- The U.S. and global economies are anticipated to experience positive growth in 2026, with no recession expected.
- Artificial intelligence adoption is seen as a major driver for market growth, comparable to past technological surges.
- A key risk for 2026 is potential AI disappointment, concerning funding or its translation into tangible results like data center construction.
- Beyond AI, non-AI stocks may benefit from business-friendly tax laws and anticipated interest rate cuts by the Federal Reserve.
- Investment strategies recommended include consistent investing across various assets and considering international exposure.
- Investors are advised to prepare for market volatility and downturns, planning ahead to avoid rash decisions.
- Consulting a financial advisor is recommended before making portfolio changes.