How will the stock market perform in 2026? Wall Street pros weigh in.

TL;DR

The S&P 500 is up 15% in 2025 through December 17th, following a 23% rise in 2024.
The Nasdaq Composite has increased over 18%, and the Dow Jones Industrial Average is up over 13% this year.
Analysts anticipate continued stock market gains in 2026, with projections for the S&P 500 to reach 7,700 by year-end.
Key drivers for 2026 include strong corporate earnings, especially in tech, and substantial capital investments in AI technologies.
The industrials sector is expected to benefit from AI-related demand for data center equipment.
A broadening of the bull market is predicted, with all 11 S&P 500 sectors potentially rising.
Softer monetary policy and a more dovish Federal Reserve are seen as potential tailwinds, with rate cuts anticipated.
Concerns about an AI bubble and the potential fracturing of the AI narrative are noted risks for 2026.
Market volatility and minor pullbacks are possible, especially after periods of consecutive growth.

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