Louis Navellier, a seasoned Wall Street veteran, remains bullish on the stock market for 2026 despite challenges like tariffs, inflation, and geopolitical tensions. He predicts double-digit returns for the year, confident in profit-friendly rate cuts and GDP growth.

Navellier believes the Fed will cut rates four times in 2026 to stimulate the economy amid job losses and deflationary pressures. His forecast contradicts the Fed’s internal projections of just one more cut this year. He anticipates that lower rates will boost GDP growth and stock prices.

The Bureau of Labor Statistics reports a rise in the unemployment rate to 4.6% from 3.4% in 2023, with layoffs exceeding 1.1 million in 2025. Despite these challenges, Navellier trusts the Fed to support the labor market, GDP growth, and share prices through rate cuts.

Navellier’s optimism for 2026 stems from projections of 5% GDP growth and a 20% return for the S&P 500. Analysts expect revenue growth of 7.2% and improved profit margins, driven by factors like cheap oil and ongoing AI investments that will boost earnings for S&P 500 companies.

Goldman Sachs data shows a surge in hyperscalers’ capital expenditures in 2025, with expectations of continued growth in 2026. IDC predicts that AI spending will have a significant global economic impact through 2030, driving GDP growth and benefiting the global economy.

Navellier remains confident in the market’s potential for growth in 2026, fueled by factors like rate cuts, GDP expansion, and strong earnings. Despite challenges like inflation and job uncertainty, he sees opportunities for investors and companies to thrive in the coming year.

Read more at Yahoo Finance: Longtime fund manager lays out surprising S&P 500 target for 2026