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Prediction: This Will Make or Break the S&P 500's Performance in 2026

Prediction: This Will Make or Break the S&P 500's Performance in 2026 David Jagielski, CPA, The Motley Fool Mon, December 15, 2025 at 4:58 AM GMT+5:30 4 min read ^GSPC Key Points The stock market has been doing exceptionally well over the past three years, and a slowdown could be looming. Investors are growing concerned about high valuations due to tech. The Federal Reserve is likely to have a new chairman next year, which may have a big impact on the markets.

Prediction: This Will Make or Break the S&P 500's Performance in 2026

Credit: Yahoo

Key Highlights

  • 10 stocks we like better than S&P 500 Index › Heading into 2026, it looks as though the S&P 500 (SNPINDEX: ^GSPC) will be coming off a third consecutive year of outperforming its long-run average of 10%.
  • As of Monday's close, the index was up over 16% thus far in 2025, which is actually lower than the previous two years when it rose by more than 23%.
  • Investors have remained bullish on the stock market despite concerns of rising valuations and a potential bubble due to artificial intelligence (AI).
  • Some, however, are worried that the market may be overdue for a steep correction, possibly even a crash given how expensive many stocks are.
  • I wouldn't be surprised to see another year of slowing returns for the market in 2026, but just how good or bad things will be will likely depend on one key decision.
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Sources

  1. Prediction: This Will Make or Break the S&P 500's Performance in 2026

This quick summary is automatically generated using AI based on reports from multiple news sources. The content has not been reviewed or verified by humans. For complete details, accuracy, and context, please refer to the original published articles.

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