Wall Street Strategists Expect U.S. Stock Market Rally in 2026 on Strong Corporate Earnings

Several leading Wall Street strategists expect the U.S. stock market to rebound sharply in 2026, arguing that improving corporate earnings will outweigh current macroeconomic uncertainty, according to ChainCatcher.Morgan Stanley’s chief investment officer Michael Wilson said the U.S. earnings recovery is “well underway,” noting that companies are demonstrating stronger pricing power and that earnings-revision trends have already bottomed out. He added that the recent pressure on equities — driven by Federal Reserve guidance and the ongoing government shutdown — is likely temporary rather than a structural threat.“Corporate earnings are improving, and expectations have stabilized,” Wilson said, emphasizing that the broader earnings outlook supports a market rebound in 2026.Despite near-term volatility, strategists argue that once clarity returns to the interest-rate path, markets will begin to re-price in line with improved growth and profitability expectations.Market attention is now turning to Nvidia’s earnings report next week, which many analysts see as a key test for mega-cap tech valuations and broader risk sentiment.