Despite the uncertainty around Trump’s policies, the S&P 500 gained roughly 18% in 2025 and GDP grew at an annualized 4.4% in the third quarter of 2025. The outlook remains positive as all 21 major Wall Street strategists predict gains for 2026. Goldman Sachs forecasts GDP growth of 2.6% and S&P 500 earnings growth of 12%, while Oppenheimer sees the index at 8,100 by the end of the year.
Here are seven reasons investors should stay bullish on the US economy in 2026.
1. Inflation Is Down
The January 2026 CPI report showed headline inflation at 2.4% year over year, down from 2.7% in December and below the 2.5% forecast. Core inflation, which strips out food and energy, fell to 2.5%, its lowest level since April 2021. Shelter costs, which make up more than a third of the CPI basket, rose just 0.2% for the month, bringing the annual rate down to 3%….
