It's been a roller coaster year for the stock market, but the S&P 500 is set to end 2025 up about 17%, the third straight year of double-digit gains.

US stocks fell slightly on Tuesday, as Wall Street tried to regroup after a tech-led slide in the final stretch of 2025.

Wall Street analysts expect growth in both the economy and corporate earnings next year, both of which bode well for stocks.

When Santa comes to town in late December for investors, it's usually a good indicator for the following year.

Some analysts predicted even better performance in 2026. JPMorgan Wealth Management predicted stock gains next year between 13% and 15%. BNY Wealth estimated the S&P 500 would end 2026 as high as $7,600, which would amount to about a 10% jump from where the index stood on Dec. 23. Morgan Stanley also forecasted an increase in 2026 of 10%.

The US stock market is about to achieve something so rare that it’s only happened five times since the 1940s: three consecutive years of double-digit gains.

The good news is that historically, once the midterm elections are over, stocks tend to rally. The S&P 500 has not had a negative return following a midterm election since 1939, and the index's average 12-month return after the election since 1950 is 16.3%.

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