The S&P 500 Is Up 9% in 2026. Wall Street Says the Stock Market Will Do This Next.

The S&P 500 has gained 9% year-to-date despite elevated valuations and economic headwinds from trade policies and the Iran conflict. Strong Q1 earnings growth (29%), particularly from AI-related companies, is driving gains. Wall Street analysts project 5% additional upside to year-end target of 7,850, implying a 15% full-year return, though downside risks remain from tariffs, inflation, and geopolitical tensions.