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

Updated on: December 17, 2025 / 2:25 PM EST / CBS News

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.