The Fed will help drive a 10% gain for stocks in 2026, says one of Wall Street’s most accurate forecasters, Tom Lee

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The Fed will help drive a 10% gain for stocks in 2026, says one of Wall Street’s most accurate forecasters, Tom LeeListen(6 min)Listen(6 min)Thursday could be telling in whether investors can look past AI spending worries fueled by Oracle, or focus on the Fed’s last rate cut of the year.The optimists looking for cheer may find it in our call of the day from Fundstrat Global Advisors’ co-founder Tom Lee, who says the bull market is “alive” and fairly well, targeting the S&P 500 SPX at 7,700 by end 2026. Note, the most optimistic forecast for now remains Oppenheimer’s 8,100 prediction.About the AuthorBarbara Kollmeyer is based in Madrid, where she leads MarketWatch's pre-markets coverage of financial markets and writes the Need to Know column. She has worked in London and Los Angeles for MarketWatch previously. Follow her on Twitter @bkollmeyer.Copyright © 2025 MarketWatch, Inc. All rights reserved.
