Optimism dominated Wall Street analyses regarding the US stock market for 2026, with all analysts predicting that the S&P 500 index would continue to rise for the fourth consecutive year, in the longest annual winning streak in nearly two decades.
The average year-end forecast indicates the index could achieve additional gains of nearly 9%, with no market decline expectations among the 21 analysts surveyed by Bloomberg, the results of which were published on Dec. 29.
Despite the collective optimism, some analysts warn of economic and geopolitical risks that could derail the upward trend, including the possibility of a slowdown in the artificial intelligence (AI) boom, Federal Reserve interest rate decisions, or unexpected shocks during President Donald Trump’s second term.
The optimism is based on the strong performance of the markets in recent years, with the S&P 500 index rising by about 90% since its low point in October 2022.
This was supported by the continued rise in shares of major technology companies amid large-scale investments in AI technologies and data centers, while some analysts believe that the absence of opposing views on the market prospects may indicate an exaggerated state of optimism.
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