: As discussed, both the U.S. and global economies are expected to expand in 2026, with recession risks remaining low. Fed Rate Cuts : The Federal Reserve is expected to continue lowering interest rates, which historically provides a tailwind for equities. One notable analysis examines S&P 500 performance after the Fed resumes rate cuts following a pause – similar to the current cycle. One notable analysis examines S&P 500 performance after the Fed resumes rate cuts following a pause – similar to the current cycle. Historically, the S&P 500 tends to weaken heading into the fall, just before mid-terms, but then rallies strongly afterward.

Source: CBC News January 10, 2026 23:07 UTC