Bank of America’s 2026 stock market forecast diverges from other Wall Street firms by predicting a 4% upside, contrary to the double-digit targets set by competitors. The bank points to a potential “air pocket” ahead due to reduced buybacks, increased capital expenditures, and less liquidity from the Fed. While some fundamentals remain solid, such as earnings growth, the market may face turbulence. Despite ongoing AI investments, BofA warns of a potential slowdown in momentum and urges investors to brace for a different market environment in 2026.

Read more at Yahoo Finance: Bank of America unveils surprise 2026 stock-market forecast