LPL Research 2026 Stock Market Outlook

A strong 2025 does not mean this advance in the stock market won’t deliver more gains for investors in 2026. Several powerful cycles may help push stocks higher in 2026, most notably the AI investment cycle that has powered technology stocks in 2025. A maturing advance during a Fed rate-cutting cycle with stocks near all-time highs also bodes well for a rewarding 2026, especially given the economy may get a fiscal policy boost as stimulus from the One Big Beautiful Bill Act (OBBBA) kicks in and boosts corporate profits and cash flows. Potential AI disappointments, possible upward pressure on long-term interest rates, renewed global trade tensions, and geopolitical instability will remain key risks for stock investors to monitor. If this outlook seems familiar, that’s because it resembles 2025.