Wall Street banks expect US stocks to post another year of double-digit gains in 2026, defying recent investor jitters over Big Tech companies’ huge spending plans and a potential bubble in the artificial intelligence sector.
The blue-chip S&P 500 index will rise to more than 7,500 points by the end of 2026, a roughly 10 per cent increase from its current level, according to the average forecast of nine major investment banks surveyed by the Financial Times. The index closed on Thursday at 6,857, having hit a record high of 6,920 in October.
While such gains would mark the seventh year of double-digit gains in the past eight, they would represent a slowdown from the 16.6 per cent rise so far in 2025 and the average over the past decade.
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