Every Wall Street Analyst Now Predicts a Stock Rally in 2026

Core Viewpoint - The US stock market is expected to rally in 2026 for a fourth consecutive year, marking the longest winning streak in nearly two decades [1] Group 1: Market Sentiment - There is a strong consensus among sell-side strategists that the S&P 500 Index will gain an average of 9% next year, with no predictions of a decline from the 21 analysts surveyed [3] - Veteran market strategist Ed Yardeni predicts the S&P 500 will finish next year at 7,700, reflecting an 11% increase from the current close, although he expresses concern over the lack of dissenting opinions [4] Group 2: Market Volatility and Economic Factors - The market experienced significant volatility in 2025, with early selloffs due to potential challenges from DeepSeek and Trump's trade policies, leading to a nearly 20% decline in the S&P 500 from mid-February to early April [5] - Despite these challenges, the S&P 500 rebounded quickly, showcasing one of the fastest recoveries since the 1950s, as strategists adjusted their forecasts upward [5] Group 3: Economic Resilience and AI Investment - The economy has shown surprising resilience post-pandemic, even amidst Trump's tariffs aimed at globalization, with substantial investments in AI driving growth [6] - The five major tech companies have contributed nearly half of the S&P 500's gains this year, fueled by investments in data-center construction and advanced computer chips [6] Group 4: Uncertainty in Market Predictions - The last five years have been marked by significant uncertainty, leading to reactive investor behavior and frequent changes in consensus opinions [7] - Michael Kantrowitz, chief investment strategist at Piper Sandler & Co., has ceased publishing year-end S&P 500 targets due to the unpredictable nature of the market [7]