Morgan Stanley Raises 2026 S&P 500 Prediction Amid ‘New Bull Market’ – Here’s Their Forecast
The past month’s mild stock market dip hasn’t dissuaded strategists at Morgan Stanley from raising their S&P 500 forecast for next year.
Mike Wilson, the financial giant’s chief investment officer, now thinks the S&P 500 will finish 2026 at 7,800 amid a “new bull market.”
With the leading index trading at 6,702.82 at time of writing, that would represent an increase of more than 16% over the next 13 months.
Wilson says in a new interview with Bloomberg Television that the Federal Reserve needs to cut rates for that forecast to materialize.
He also says it’s dependent on “the earnings cycle broadening out.” Wilson argues that the Fed’s balance sheet needs to expand to support the growth that he predicts will materialize next year.
[5:32] “If we don’t get at least one of those items surprising the markets, meaning more than three cuts, or we get more balance sheet expansion, call it QE, call it something else, yield curve control, whatever you want to call it, if we don’t get some combination of that, then we’re not going to reach our target.
So I’m assuming that we get there either through the labor data or through some financial stress.”
The S&P 500 is up nearly 1% in the past five days but down 1.31% in the past month.
Generated Image: Midjourney
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Dogecoin News Today: Dogecoin ETF Breakthrough: Transitioning from Internet Meme to a Mainstream Investment Option
- Bitwise's DOGE ETF (BWOW) launches Nov 26, 2025, offering regulated DOGE exposure with 0.34% fee. - Dogecoin ranks 9th at $22B market cap, with $1B+ daily volume, driven by institutional adoption and SEC approval shifts. - ETF structure holds actual DOGE, aligning with Bitwise CEO's vision to democratize crypto access through transparency. - Grayscale's Zcash ETF filing and Mutuum Finance's $19M presale highlight growing altcoin institutional interest. - DOGE trades at $0.1503, consolidating in $0.13–$0.
Regulation and Innovation: SEC Examines Nasdaq’s Proposal for Tokenized Stocks
- Nasdaq seeks SEC approval for tokenized stock trading framework, aiming to modernize settlement while aligning with existing regulations. - The proposal shares CUSIPs and rights between tokenized/traditional shares but faces criticism over potential market fragmentation and investor protection risks. - SEC's cautious approach and December 4 panel will determine if tokenized equities gain regulatory traction or remain niche experiments. - Industry divides persist: Nasdaq prioritizes incremental adoption w
XRP News Today: Investors Divided: XRP's $5 Buzz Compared to Ozak AI's 7,000% Growth Promise
- XRP gains traction as analysts predict $5 price targets via ETF-driven inflows, citing historical Bitcoin multipliers. - Ozak AI emerges as AI-focused crypto alternative, raising $4.54M in presale with 7,000% return potential via decentralized AI infrastructure. - Market splits between XRP's institutional appeal and Ozak AI's utility-driven innovation, highlighting crypto's shifting risk-reward dynamics. - Analysts note XRP's capped growth vs. Ozak AI's 50X-100X potential, emphasizing real-world AI appli
Between Breakthroughs and Turmoil: The Struggle for Safety and Longevity in Cryptocurrency
- Crypto sector faces structural challenges balancing innovation with security and sustainability amid rising threats and regulatory uncertainty. - Mutuum Finance advances dual-lending architecture and mtToken mechanics under Halborn audit to build defensible DeFi models. - Upbit's $36M hack and Tether's Uruguay exit highlight systemic vulnerabilities from cyberattacks and energy cost volatility. - Industry shifts toward sustainable yield models with automated collateral rules and revenue redistribution to
Trending news
MoreCrypto prices
More
