Wall Street projects 3.7% to 11% S&P 500 gains in 2026 as P/E hits 22x

Updated January 4, 2026, Wall Street banks forecast the S&P 500 to end the year between 7,100 and 7,600, implying gains of 3.7% to 11%. This follows a 16% rise in 2025 and comes as valuations reach 22 times forward earnings, near levels seen around the 2000 dot-com peak.