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.

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

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.

The Morning Bull - US Market Morning Update Thursday, Jan, 8 2026 US stock futures are slightly softer this morning, as investors weigh strong services activity against cooler hiring signals and what that could mean for interest rates.

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.

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.

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%.

The major gauges have traded flat following Wednesday's pullback that ended multi-day rallies to start the year.