Morgan Stanley predicts three surprises that could shake up the market in 2026. These include a productivity boost, a shift in stocks & bonds, and a rally in commodities. The bank expects another strong year for stocks with a 13% gain in the S&P 500. Other Wall Street firms share this optimism.

One potential surprise is a “jobless productivity boost” scenario that could lead to more Fed rate cuts. This could stem from a weakening job market, keeping a lid on inflation while boosting productivity. Labor productivity is already rising. Investors are anticipating more rate cuts in 2026 than the Fed has projected.

Commodities, including energy, could see a repeat of their 2025 run in 2026. Factors like a weaker dollar and a rebound in China’s economy may drive prices up. Analysts predict a positive year for energy prices and commodities due to tight supply, rising demand, and interest in safe-haven assets like gold.

Gold hit a record high, while silver and copper also reached new peaks. The AI trade and global economic factors are contributing to the surge in these metals’ prices. Analysts anticipate a promising year for commodities as demand remains strong and supply remains tight.

Read more at Yahoo Finance: 3 surprises that could rattle markets in 2026, according to Morgan Stanley