As we look toward calendar year 2026, Rothschild & Co’s market outlook reflects a cautious yet constructive view on global equities, grounded in corporate earnings fundamentals, monetary policy expectations, and prevailing valuation levels. Based on recent Rothschild & Co growth equity research, consensus forecasts from institutional investors show a wide range of expectations for the S&P 500 year-end 2026 level, with the majority clustering between 6,500 and 7,500. Only a small minority expect the index to reach as high as 8,000–8,500 The firm’s strategists emphasize that earnings growth—anticipated at roughly mid-teens percent for 2026—remains a key driver of equity performance, although valuation multiples appear elevated by historical standards, particularly in the United States. S&P 500 year-end 2026 target likely ranges between ~6,500–7,500, driven by solid earnings but tempered by high valuations and ongoing macro uncertainties. Rothschild & Co’s analytical framework would also underscore valuation risk as a moderating factor: U.S. equity valuations are currently testing historical averages, implying that future returns may be more sensitive to earnings delivery and macro developments. Rothschild & Co. Geopolitical tensions, central bank leadership changes (e.g., U.S. Federal Reserve leadership transitions), and inflation dynamics could introduce volatility during the year. Rothschild & Co. Risk-adjusted view: Equity markets are expected to deliver positive returns in 2026, but with heightened sensitivity to changes in earnings trends and monetary conditions. Sector & Regional Themes Aligning with a strategic institutional approach: Sector tilts likely favored: Technology & AI-related industries, given ongoing investment and corporate profits. Financials & industrials, potentially benefiting from interest rate normalization. Emerging markets and European equities, where valuation buffers and macro support are relatively attractive. Regional nuance: Emerging market equities are viewed as attractive due to comparatively lower valuations and improving fundamentals. Rothschild & Co. Europe may benefit from stronger credit impulses and fiscal stimulus relative to other developed regions. (Inferred from broader institutional research trends.) 📈 Summarised 2026 Price Predictions (Rothschild & Co perspective) Market / Index 2026 Projection Range Key Drivers S&P 500 6,500–7,500 Earnings growth + Fed rate cuts; valuations a moderating force EU equities Modest upside Strong sentiment; macro support Emerging markets Outperformance potential Attractive valuations; structural growth From a Rothschild & Co , 2026 is expected to be a positive but nuanced year for stock markets: Growth likely to continue, led by earnings and supportive monetary conditions. Valuation risk and macro uncertainty temper the most aggressive upside scenarios. Diversification across sectors and regions remains a prudent positioning strategy for investors.

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