'It's a bull market': Wall Street sees more upside in stocks for the second half of 2026

July 5, 2026 - 17:54

The stock market ended the first quarter on a high note, and major Wall Street firms are now forecasting continued momentum through the second half of the year. Analysts point to resilient corporate earnings, cooling inflation data, and steady consumer spending as key drivers behind the optimistic outlook. One strategist summed up the sentiment simply: "It's a bull market."

Despite lingering concerns over interest rates and geopolitical tensions, the S&P 500 and Nasdaq both posted solid quarterly gains. Financial institutions are revising their year-end targets upward, with several predicting double-digit percentage returns by December. The technology sector, in particular, has shown surprising strength, buoyed by demand for artificial intelligence infrastructure and cloud computing services.

However, not all experts are fully convinced. Some caution that valuations remain stretched and that the Federal Reserve's next moves on monetary policy could still introduce volatility. Yet the prevailing mood on trading floors is one of cautious optimism. "We see room to run," another analyst noted, "especially if earnings season delivers as expected."

For now, the bull case appears to have the upper hand. Investors are watching for second-quarter corporate reports and any shifts in labor market data, but the general consensus is that the path of least resistance remains upward. As one portfolio manager put it, "The market is telling us to stay invested."