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Stock-Market Rally to Continue Through 2026: What Investors Should Buy Now

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  Published in Stocks and Investing on Saturday, December 13th 2025 at 5:28 GMT by Barron's

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How the Stock‑Market Rally Can Keep Going in 2026 – What to Buy Now

The latest MSN Money feature, “How the Stock‑Market Rally Can Keep Going in 2026 and What to Buy Now,” argues that the bullish trend that has been driving equity prices for the past year is far from over. It explains why a “second‑wave” rally is plausible, outlines the macro‑economic backdrop, and gives readers concrete buying ideas that could position them for gains through 2026 and beyond.

1. The 2024‑2025 Rally Isn’t Finished

The article opens by noting that U.S. equity indices have returned roughly 35 % since the start of 2024, a gain that outpaces most other asset classes. It points to three key reasons why analysts are optimistic that the rally can continue:

The article emphasizes that while there have been bumps—such as the recent dip in the S&P 500 after a surge in inflation expectations—the underlying fundamentals remain healthy. A chart included in the piece shows the S&P 500’s trajectory against the 10‑year Treasury yield, illustrating how a tightening spread (the difference between the two yields) is historically correlated with rally momentum.

2. Where the Money Is Going

a. Tech and Growth

The article repeatedly cites the “technology, media, and telecommunications” (TMT) sector as a prime driver. The narrative is that AI, 5G, and cloud computing are still in the early growth phase. It references two ETFs that investors could use to capture TMT exposure: ARK Next Generation Internet (ARKW) and iShares Expanded Tech Sector (IGM).

“ARKW’s focus on AI and quantum computing positions it to ride the next wave of innovation.”

The article links to an ARKW fact sheet, providing a quick look at the fund’s top holdings—Apple, Nvidia, and Microsoft.

b. Consumer Discretionary & Retail

Consumer spending is projected to remain robust thanks to rising disposable income and low mortgage rates. The piece highlights Consumer Discretionary and Retail stocks, with a spotlight on Amazon and Shopify. A side‑by‑side comparison of Amazon’s revenue growth versus the sector average demonstrates why it remains a “top‑tier” pick.

c. Healthcare & Biotechnology

Healthcare is portrayed as a “defensive‑growth” play, combining steady demand with innovation in drug discovery. The article recommends Vanguard Health Care ETF (VHT) as a broad, low‑cost option, and singles out Moderna and CRISPR Therapeutics as high‑potential bets. A link to Moderna’s recent FDA approval for its new COVID‑19 vaccine adds weight to the argument.

d. Clean Energy & ESG

The clean‑energy transition is framed as an “inevitable long‑term play.” The article references the iShares MSCI Global Impact ETF (MNIT) and the Invesco Solar ETF (TAN) for readers looking to get exposure to renewable energy. A sidebar explains how the “green” tilt of the ETF aligns with the growing demand for ESG‑friendly investments.

e. Dividend‑Yielding Growth

While most growth stories focus on capital appreciation, the article argues that a dividend‑yielding component is essential for a balanced portfolio. It highlights Vanguard Dividend Appreciation ETF (VIG) and the SPDR S&P Dividend ETF (SDY), noting that they combine moderate growth with a 2–3 % yield—comforting for income‑focused investors.

3. Risks and Red Flags

The article is not a blind endorsement of the rally. It outlines several risk factors that could temper the upside:

• Inflation rebound – The Fed’s “dot plot” now shows a potential re‑tightening of policy if inflation spurs upward momentum.
• Geopolitical tensions – Escalating trade frictions between the U.S. and China could choke supply chains.
• Valuation pressure – The S&P 500’s forward P/E is currently above its 20‑year average.
• Consumer debt load – Rising credit card balances could force a tightening of consumer spending.

Readers are urged to keep a close eye on CPI data, the Fed’s minutes, and the Bloomberg Economic Outlook for early signals.

4. Tactical Allocation Ideas

The piece ends with a set of actionable allocation frameworks:

The article includes a link to an interactive asset‑allocation worksheet that helps investors plug in their risk tolerance and rebalance accordingly.

5. Bottom Line

“The stock‑market rally is not a one‑time event; it’s a new era of growth” is the central thesis. With a Fed that is still likely to keep rates low, corporate earnings that keep beating expectations, and a world hungry for technology, clean energy, and healthier lifestyles, the article concludes that a rally through 2026 is “not just possible but likely.”

Investors who want to participate should focus on sectors with structural headwinds, avoid over‑concentrating in single names, and maintain a modest dividend exposure for income. By following the article’s suggested mix, readers can aim for a portfolio that is poised for both growth and resilience.

Key Takeaway: The rally can keep going because the macro backdrop—low rates, high earnings, and structural demand—is still solid. The right mix of tech, consumer discretionary, healthcare, ESG, and dividends can help investors capture that upside while managing risk.