Fasten your seat belt for a 'volatile' 2026, market strategist says

Yahoo Finance Published Updated Stocks
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Affected assets and topics

MARKET VOLATILITY S&P DOW

Why it matters

A market strategist predicts a 'volatile' 2026 due to the upcoming national mid-term elections, but notes that historically, the S&P 500 has seen significant gains after the elections.

Article tone

Neutral How the article is written, as reported by the source.

Expected market reaction

Neutral Confidence 63% How confidence is read Impact: Moderate

Market impact analysis based on neutral sentiment with 63% confidence.

Evidence trail

Evidence
Source Yahoo Finance
Claim Fasten your seat belt for a 'volatile' 2026, market strategist says
AI inference Neutral · 63%
Generated 2025-12-22 20:53

AI provenance

Analysed by Llama 3.1 8B Instant (Groq) Methodology v1.0 Generated
Technical identifiers
Provider tag
groq-llama-3.1-8b-instant
Analysis version
groq-llama-3.1-8b-instant
Article id
25451

Original source

STORY: Americans will go to the polls on November 4, 2026 for national mid-term elections."On average, we see 3.8% growth for the S&P 500 going back to World War II in these midterm election years, and only a 55% frequency of advance," he explained. "And not only do we get low returns, but the volatility has been very high, with an average intra-year drawdown of 18%."Still, there is light at the end of the tunnel, Stovall said. "Once the elections have run their course, investors breathe a sigh of relief and sort of pile back into stocks," he explained.Stovall noted that, historically, "from October 31 of the midterm election year through October 31 of the year after, the S&P gained an average of 16% and was higher 100% of the time."

Read the full article on Yahoo Finance

Original article published by Yahoo Finance on December 22, 2025. Analysis and insights provided by AnalystMarkets AI.

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