Core Viewpoint - Bank of America predicts a solid year for the stock market in 2026, with expectations of continued momentum despite concerns about the US economy [1][7]. Market Predictions - The S&P 500 is expected to rise by another 8%, reaching a target of 7,200 within the next 12 months [3][5]. - The bank's price target aligns with other Wall Street forecasts, including Morgan Stanley's target of 7,200 and Goldman Sachs' target of 6,900 [5]. Corporate Earnings - Corporate earnings are projected to grow around 12% in the next year, indicating robust earnings growth for S&P 500 companies [6][8]. - Factors contributing to this earnings growth include improved productivity, increased business investment, looser monetary policy, and easing trade uncertainties [8].
Here are BofA's 3 big predictions for the stock market in the next year