2026 midyear investing outlook

2026 may feel like a year no one could have seen coming, with new geopolitical conflicts, oil market dislocations, and sudden bursts of market volatility.

Yet in many ways, the year so far has followed a familiar script. Stock prices have generally tracked corporate profits, as they usually do. Those profits have been rising, as analysts expected they would this year. And investors who stayed invested through the day-to-day noise have generally fared better than those who sat out of the market—as has often been the case historically.

As the second half of the year dawns, the US economy remains on relatively solid footing. While the ongoing conflict in the Middle East poses a potential risk to inflation and economic growth, so far the disruptions have not been sufficient to derail the US economy from its growth trajectory. Read or watch below for more on the economic outlook from Fidelity’s professionals.

2026 midyear roundtable

Join us for a timely conversation about how the economic backdrop may shape the rest of the year.

Outlook for markets and investments

Despite significant turbulence along the way, most major stock market segments—including US and international stocks, as well as large- and small-cap companies—were posting positive returns for the year as of mid-May. Some areas, including emerging-market stocks and small caps, had even moved into double-digit return territory.

Seeing the market notch one all-time high after another can understandably make investors cautious about putting new money to work. But due to the strength of corporate earnings growth, Fidelity professionals say the market generally does not appear overstretched. That doesn’t mean a pullback in the second half is off the table—periods of volatility are always possible. Still, if earnings growth holds up and interest rates don’t become a headwind, continued market strength remains a real possibility.

Read more below on Fidelity pros’ market outlook and investing ideas for the second half of the year.

The new diversification

Increasingly, savvy investors are looking beyond stocks and bonds. Learn where—and why.

Your midyear financial check-in

Beyond investing, midyear brings a fresh chance to take stock of your finances—so you can spot new opportunities and address sources of financial stress head on.

Recent tax law changes continue to ripple through the financial landscape, creating new saving and planning opportunities for many. And while inflation has once again shown signs of picking up, there are practical steps you can take to help protect both your finances and your peace of mind.

Read more below for money moves, tax tips, and inflation‑fighting strategies designed to help you finish the year on stronger, more confident financial footing.

Go deeper: Watch for more insights

Keep exploring with webcasts that dig deeper into some of the key questions facing investors and savers today—from what's next for crypto, to whether a Roth conversion makes sense in what's been a volatile year for the market.

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Investing involves risk, including risk of loss.

Diversification and asset allocation do not ensure a profit or guarantee against loss.

Past performance is no guarantee of future results.

Views expressed are as of the date indicated, based on the information available at that time, and may change based on market or other conditions. Unless otherwise noted, the opinions provided are those of the speaker or author and not necessarily those of Fidelity Investments or its affiliates. Fidelity does not assume any duty to update any of the information.

Fidelity does not provide legal or tax advice. The information herein is general in nature and should not be considered legal or tax advice. Consult an attorney or tax professional regarding your specific situation.

Stock markets are volatile and can fluctuate significantly in response to company, industry, political, regulatory, market, or economic developments. Investing in stock involves risks, including the loss of principal.

In general, the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk, liquidity risk, call risk, and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so holding them until maturity to avoid losses caused by price volatility is not possible. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Foreign markets can be more volatile than U.S. markets due to increased risks of adverse issuer, political, market, or economic developments, all of which are magnified in emerging markets. These risks are particularly significant for investments that focus on a single country or region.

Because of their narrow focus, sector investments tend to be more volatile than investments that diversify across many sectors and companies.

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