Home / Business and Economy / S&P 500 Heads for 'Boring' Year Amid Tech Pause
S&P 500 Heads for 'Boring' Year Amid Tech Pause
24 Dec, 2025
Summary
- S&P 500 expected to rise 3-5% in 2026, ending in the 7,200s.
- Mega-cap tech stocks may pause due to investor concerns over AI spending.
- Industrials, transports, and financials are predicted to lead market next year.
The S&P 500 is projected to experience a "boring, normal year" in 2026, a significant shift from its recent double-digit gains. Jay Woods, chief strategist at Freedom Capital Markets, anticipates a 3% to 5% increase for the index, potentially closing 2026 in the low 7,200s. This forecast suggests a continuation of the bull market, albeit without the rapid acceleration seen in previous years.
This anticipated slowdown is partly attributed to a potential pause in big tech stocks, which have been the primary drivers of market performance. Concerns are mounting over the return on investment for the substantial $400 billion being spent on AI infrastructure. As hyperscalers like Microsoft and Alphabet face scrutiny, their significant market capitalization could weigh on the broader index.
