Several Federal Reserve officials (including Chair Jerome Powell) have recently commented on the stock market's elevated valuation.

Stock Market Today: The Dow Jones index wavers Wednesday ahead of the Fed decisions and Powell's comments. Tesla earnings are due late.

Bloomberg reported in late 2025 that analysts from firms across Wall Street are predicting big things in 2026 — another year of at 9% returns on the S&P 500, with the possibility of double digit returns. This would mark the first time since the 90s dot-com bubble that the S&P would mark four years of double-digit returns (1).

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Last year saw the stock market grow but still marked the worst first year of a presidential administration in terms of stocks since 2005, as President Trump’s drastic shifts on tariffs fueled economic uncertainty.

The central bank opted for its first pause after three rate cuts last year, as officials wait for clearer signs that inflation is cooling.

The Federal Reserve pushed the pause button on its interest rate cuts, leaving its key rate unchanged at about 3.6% after lowering it three times last year.