The year will come to a close within the next week as investors look to 2026, which is expected to have a big impact. Stocks could end the year at an all-time high next week. With only three trading sessions left in 2025, major average stock prices continue their mad dash towards all-time highs. On Friday, the S&P 500 index fell less than 1% below the milestone of 7,000. This will be the final flourish for a market that has weathered a wall of uncertainty this year, weathering the early tariff turmoil in April and fears of the AI bubble bursting. There is no shortage of concerns that the market will have to go beyond this over the next year. According to CNBC’s 2026 Market Strategist Survey, the S&P 500 is expected to post another double-digit gain as accommodative monetary policy, fiscal stimulus and artificial intelligence are believed to lead to growth in corporate profits. However, 2026 is also the year of midterm elections, which is historically a volatile time for markets. This is especially true in the second half of the year. The S&P 500 index fell an average of 6.6% in the third and fourth quarters, according to the Stock Traders Almanac. Moreover, it happened at a time when valuations seemed to have less wiggle room. The broad market index trades at a multiple of 22 times forward earnings. “Historically, coming from a strong year like 2025, the next year is definitely going to be more volatile,” said Giuseppe Sette, co-founder and president of Reflexivity. “Not because anything needs to go wrong, but because if something goes wrong the market becomes more vulnerable.” But for traders clinging to their trading desks heading into 2026, a week of low volume and increased volatility is a good time to take positions in line with what investors expect at the start of the year, Sette said. Seasonally speaking, there will be strong tailwinds for investors next week. The Santa Claus Rally (the trading period from the last five trading days of the year to the first two trading days of the new year) has historically contributed to an average 1.3% rise in the S&P 500 index, according to the Stock Traders Almanac. Next Thursday marks the start of the first five trading days of the year. Historically, this short period of time has shown the market what’s to come. According to Almanac, the S&P 500 index has been positive in the first five trading sessions in the past 48 times, followed by 40 full-year gains. The FOMC minutes will also be released next week, and are expected to be released Wednesday at 2:00 pm ET. The New York Stock Exchange will be closed on Thursday, January 1st for New Year’s Day. Week Ahead Calendar All Time (ET). Monday, December 29th Tuesday, December 30th Wednesday, December 31st 2pm FOMC Minutes Thursday, January 1st NYSE closed for New Year’s Day. Friday, January 2nd
