Wall Street has taken a very bullish stance ahead of the new year, with major research firms calling for more gains in 2026. Stifel has the lowest S&P 500 (SPX) price target on the street at 7,000, which still implies upside from current levels.
Claim 70% Off TipRanks This Holiday Season
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
However, despite issuing a 2026 price target of 7,450, CIBC Capital Markets Strategist Christopher Harvey cautioned that “people are sleeping on a lot of macro risks.”
Rate Cut Path and USMCA Review Create Uncertainty
Harvey points out that the Fed leadership transition and the pace of rate cuts could create challenges. Fed Chair Jerome Powell’s term is set to end in May 2026, and the transition could add uncertainty to the timing and pace of future rate cuts. The market is currently pricing in two rate cuts by the end of 2026, according to CME’s FedWatch tool.
Another risk is the review of the United States-Mexico-Canada Agreement (USMCA) in July 2026, which could revive tariff concerns. “That could begin to upset the applecart,” Harvey said.
Stay ahead of macro events with our up-to-the-minute Economic Calendar — filter by impact, country, and more.