According to FactSet Research, the S&P 500 currently boasts a forward price-to-earnings (P/E) multiple of 22. Not only is this elevated compared to the index's five-year and 10-year forward P/E levels, it is historically high in general.

U.S. stocks pressed higher on Friday after the December jobs report helped quiet concerns about the state of the U.S. labor market.

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.

In 2025, this stock market trio delivered an encore performance following the first year of Trump's second, non-consecutive term. When the curtain closed on Dec. 31, the Dow, S&P 500, and Nasdaq Composite had climbed 13%, 16%, and 20%, respectively, with all three notching several record-closing highs throughout the year.

The U.S. stock market ended broadly higher Friday, with most of the S&P 500's sectors rising during the trading session and on the week. The Dow, S&P 500 and Nasdaq all booked their biggest weekly gains since late November,

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%.

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.

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.

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%.

S&P 500 earnings are estimated to increase by double-digit percentages in each quarter of 2026, according to FactSet data. Earnings growth is expected to be the strongest in the fourth quarter at 18.1%. For the year, earnings are being modeled to grow 15%.