Desmond Lachman warns that Trump could be "setting himself up for electoral disappointment" with his brags about U.S. equities.

Q4 is expected to slow compared to the stellar 17.1% gain in Q4 '24, but 2026 should remain strong. Q1 estimates indicate 13.3% growth, which is expected to rise to an impressive 17.5% by year-end and 16.5% in early 2027.

Investors today are cheering envudeucitinib's Phase 3 edge in oral TYK2 psoriasis as well as Alumis' plans to raise fresh capital.

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 CAPE (cyclically adjusted price-to-earnings) ratio measures how expensive the stock market is relative to how much companies are earning. The heuristic works as a reality check: When CAPE is high, stocks are richly priced and future returns have been historically lower. When CAPE is low, stocks tend to be cheaper.

One pundit tracking the company feels it's been rather adaptable given the challenges of China-U.S. trade these days.

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%.

When do U.S. stock markets open again after the New Year's holiday? Here's what to know about the 2026 schedule.

The stock market faces several headwinds in 2026, but Wall Street still expects another year of double-digit gains.