What to expect from stocks in 2026
CNN••business
Key Points:
- The S&P 500 completed three consecutive years of double-digit gains, with analysts forecasting continued positive returns in 2026, though estimates vary widely from about 3.7% to nearly 17%.
- Key drivers for the bullish outlook include strong corporate earnings, expected Federal Reserve rate cuts, and optimism around AI technology fueling growth, with major tech stocks like Nvidia, Microsoft, and Apple favored by strategists.
- Despite the positive sentiment, experts caution that high stock valuations, geopolitical tensions, potential Fed leadership changes, and unresolved economic risks could create volatility and limit upside potential.
- Historical data shows that after years of strong gains, the market often experiences significant pullbacks before further advances, highlighting the importance of preparing for possible corrections amid the ongoing
