Is Wall Street's AI-Fueled Rally Far From Over? Traders See S&P 500 Soaring In 2026 Like Never Before - State Street SPDR S&P 500 ETF Trust (ARCA:SPY)

Core Viewpoint - Wall Street's prediction market indicates that the S&P 500 could reach between 7,600 and 7,800 by the end of 2026, reflecting a positive outlook for U.S. equities [1][2]. Market Predictions - Kalshi's prediction market shows that approximately 19% of traders expect the S&P 500 to close between 7,600 and 7,799.99 by year-end 2026, suggesting a continued upward trend for the index [2]. - Major forecasts from firms like Goldman Sachs predict double-digit earnings growth and a mid-single to high-teens percentage increase for the S&P 500 in 2026, with average year-end targets ranging from 7,500 to 8,100 [4]. Current Market Status - The S&P 500 is currently near record highs in the high-6,900s, maintaining its momentum as it approaches 2026 [3]. Earnings Growth and Market Dynamics - Earnings growth expectations are strong, driven by robust corporate profitability, a rebound in deal-making, and ongoing investments in AI [5]. - The Kalshi market operates differently from traditional analyst forecasts, as it prices outcomes based on real money bets, making it sensitive to macroeconomic changes [5]. Recent Market Activity - S&P 500 futures increased by 0.40% ahead of the Federal Reserve's interest rate decision and earnings reports from major technology companies [6].