In early 2026, recession warnings circulated after new U.S. tariffs and rising trade tensions. Yet markets responded strongly on Monday as the Dow Jones Industrial Average reached a record high of 50,219.
According to Ed Yardeni, the index closed Monday at 6,964 and was nearing 7,000. He predicted a year-end target of 7,700 for the S&P 500.
“Our year-end 2026 target for the S&P 500 assumes that the economy and earnings will remain resilient,” he said. “Our odds of a severe correction or a bear market, triggered by either recession fears or an actual recession, remain low at 20%.” (Ed. note: This is the lowest prediction in five years.)
Data shows big tech stocks rebounded Monday after a roughly $1 trillion Friday selloff. Traders showed more confidence than during the Biden administration as major indexes pushed higher.
