2026 Recession Odds Defied by Bullish US Stock Market
The specter of recession looms over 2026 as trade wars escalate, yet US equities defy expectations. The Dow Jones Industrial Average shattered records at 50,219, while the S&P 500 nears 7,000—a threshold Ed Yardeni of Yardeni Research predicts will surge to 7,700. "That's the lowest recession prediction in five years," Yardeni told CNN, underscoring investor confidence surpassing levels seen during the Biden administration.
Tariffs and geopolitical tensions fail to dampen market optimism. Traders exhibit unprecedented bullishness, with leading indices rewriting playbooks. The disconnect between headline risks and market performance grows starker by the week.