Expect a 3-5% return in the S&P 500 in 2026, says Freedom Capital's Jay Woods

Market Outlook - The market is expected to continue its bull run, but growth will be moderate, with projected S&P returns in the 7200s, reflecting a 3 to 5% increase from current levels [4][7] - The leadership in the market is changing, with a broadening of sectors, particularly in technology, where there will be both winners and losers [5][6] Sector Analysis - Financials and industrials are highlighted as strong sectors, with major banks like JP Morgan and Goldman Sachs performing well [9][10] - The transport sector is also noted for its potential, with companies like FedEx and UPS showing signs of recovery and growth [11][12] Economic Indicators - The financial sector is seen as a barometer of market confidence, with ongoing M&A activity and IPOs indicating a healthy environment despite consumer confidence hitting record lows [14][15] - The upcoming midterm elections are expected to create volatility, but gridlock could set up favorable conditions for the market in 2027 [7] Risks and Concerns - Potential legal challenges regarding tariffs could introduce uncertainty, impacting market confidence and performance [16][17] - The transition to a new Fed chair and the upcoming meetings are anticipated to create volatility, as new voting members may influence market dynamics [18][19]