With just a few days into the New Year, stock market analysts and pundits are making their predictions for 2026. But how good are these stock market predictions? Well, let’s look at some projections FactSet gave last year about 2025.

The S&P 500 has barely budged since late October. Yet beneath the surface of the U.S. equity market, big shifts have been taking place.

Breaking stock news is now free. Create your account to stay informed—and explore the insights behind every move. The S&P 500 is supported by robust earnings growth and favorable macro conditions, but technicals signal an imminent correction in 2026.

Although the first few months of 2025 started off rocky for the stock market amid the Trump administration's tariff plan, the market made an impressive turnaround and finished the year strong. The S&P 500-- which is often used to gauge the stock market's performance -- finished the year up just over 16%.

Some analysts predicted even better performance in 2026. JPMorgan Wealth Management predicted stock gains next year between 13% and 15%. BNY Wealth estimated the S & P 500 would end 2026 as high as $7,600, which would amount to about a 10% jump from where the index stood on Dec. 23. Morgan Stanley also forecasted an increase in 2026 of 10%.

Here's what you need to know about whether U.S. stock markets will be open or closed on New Year's Day this year.

The ginormous "Magnificent Seven" stocks have been the stars of the stock market in recent years. In 2025, international stocks were the biggest winners. I predict, though, that small- and mid-cap stocks will, at long last, take the torch in 2026.

The S & P 500 finished the year up 16%, while the tech-heavy Nasdaq climbed 19%. The Dow Jones Industrial Average closed out 2025 up 13%. A dip in each of the indexes on Wednesday left markets lower in the year’s final trading session.

The S&P 500, the Dow and the Nasdaq are all within touching distance of record highs, having surged through 2025, with U.S. president Donald Trump predicing a 2026 “boom.” However, as traders brace for the "biggest merger in history, the $3 trillion bitcoin and crypto market could be flashing a warning sign to stocks.

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