"but Wall Street is already showing signs of holiday cheer, potentially leading up to another big year for stocks in 2026. During the Thanksgiving-shortened week, the Dow Jones Industrial Average jumped more than 3%, the S&P 500 surged nearly 4%, and the Nasdaq leapt more than 4%. That's after selling off sharply earlier this month on fears that the AI bubble will burst and hints that the Federal Reserve won't cut interest rates as much as anticipated."
"If that happens, the S&P 500 will finish 2025 with a 19% gain, following surges of more than 20% in each of the past two years. And the market could still post double-digit advances from there. Earlier in the week, Yardeni reaffirmed his forecast for the index to soar to 7,700 in 2026, indicating a 10% increase from his 2025 view."
Stocks showed strong gains late November, with the Dow up more than 3%, the S&P 500 nearly 4%, and the Nasdaq over 4% during the Thanksgiving-shortened week. Earlier selling had been driven by fears of an AI bubble burst and expectations that the Federal Reserve would not cut interest rates as much as anticipated. Panic-selling of bitcoin eased, supporting a year-end rally. Ed Yardeni projected the S&P 500 could hit 7,000 by year-end and rise to 7,700 in 2026, while forecasting continued Roaring-2020s growth without an economy-wide recession. Deutsche Bank projected an S&P 500 target of 8,000 for next year.
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