News

Bank of America drops surprising 2026 market forecast here's what to expect and what investors must know

Bank of America 2026 forecast shocks Wall Street. The S&P 500 is expected at 7,100, just 4% above current levels. Buybacks are slowing, hitting $234.6 billion in Q2 2025, down 20% from Q1. Tech giants are spending $370 billion on AI and data centers, limiting cash for shareholders. The Feds balance sheet shrank from $9T to $6.6T, cutting liquidity. Earnings remain solid, but BofA warns of an air pocket where growth slows. Investors should focus on strong fundamentals and discipline. AI hype meets tighter market fuel in 2026.