In 2026, Wall Street strategists predict stock market gains driven by Fed rate cuts, tax incentives, and lower-than-expected inflation. Cheap oil prices and easing shelter costs suggest inflation may cool. A weak employment report gives the Fed reason to cut rates, potentially boosting economic activity. Companies benefit from depreciation tax benefits and expect economic growth despite a K-shaped divide in consumer affordability. Rents are easing, worker productivity is up, and the stock market is rallying thanks to AI adoption. Experts caution against rapid AI job replacement, warning of potential economic threats. 1. The U.S. economy added 943,000 jobs in July, surpassing expectations and lowering the unemployment rate to 5.4%. The gains were seen across various sectors, with notable increases in hospitality, retail, and healthcare industries.

2. COVID-19 cases in the U.S. continue to rise due to the Delta variant, with daily averages reaching 100,000. Hospitals are once again overwhelmed, and vaccination rates remain stagnant in some states, prompting health officials to urge more people to get vaccinated.

3. The Tokyo Olympics came to a close with the United States leading in total medals, including 39 golds. Notable victories came from athletes like Simone Biles, who returned to win a bronze in the balance beam, and Sydney McLaughlin, who set a new world record in the women’s 400m hurdles.

Read more at Yahoo Finance: Why Wall Street expects juiced economy, stock gains this year