Wall Street Analyst Predicts Market Shift and Economic Changes by 2026

According to Odaily, renowned Wall Street bear Peter Berezin forecasts a significant shift in the stock market by early 2026, as investors move from tech stocks to non-tech stocks and from growth stocks to value stocks. Berezin anticipates that these changes will lead to the S&P 500 index closing at 5280 points in 2026, marking a 23% annual decline, while the Nasdaq Composite Index is expected to fall by 31%. Additionally, the U.S. dollar is predicted to weaken, with the yen significantly appreciating, and the dollar-yen exchange rate expected to reach 115 by the end of the year. Gold prices are projected to hit new historical highs. Growing concerns over a U.S. economic recession are likely to prompt the Federal Reserve to accelerate interest rate cuts in the second half of 2026. By December 2026, the federal funds rate is expected to decrease to 2.25%, and the yield on 10-year U.S. Treasury bonds is anticipated to drop to 3.1%.