Key insights
- Ed Yardeni forecasts the market rally to extend into 2026-2027, fueled by strong earnings, AI productivity, and economic resilience. He anticipates continued S&P 500 record highs and dismisses major crash fears due to rising earnings estimates and tech gains. This bullish outlook could encourage further investment in US equities.
Ed Yardeni, president of Yardeni Research, projects the current market rally will persist into 2026 and 2027, driven by a "Roaring 2020s" scenario of strong corporate earnings, AI-driven productivity, and economic resilience. He anticipates the S&P 500 will continue to hit record highs, forecasting continued expansion as earnings grow.
2026 Outlook: Yardeni sees 2026 as another positive year for the market, with expectations of continued double-digit growth in earnings and potential double-digit returns for the S&P 500.
Yardeni's analysis suggests that fears of a major market crash are less likely, as the "earnings hook" (rising analyst estimates) and technological productivity gains continue to drive the market forward.
Ed Yardeni specifically identified Monday, March 30, 2026, as the market bottom for the year.