Wharton professor emeritus Jeremy Siegel believes that the stock market’s surge higher will finally lose some of its momentum next year. The benchmark S & P 500 is on pace for a nearly 18% gain for 2025. But in 2026, Siegel expects, the index — which is still heavily weighted towards technology stocks — could rise in the high-single digits, between 5% and 10%. Siegel attributed this view to waning momentum among the “Magnificent Seven” cohort. “The non-Mag Seven could be 10% to 15%, with a Mag Seven finally positive, but in the low-single digits,” he said on CNBC’s “Squawk Box” Monday morning. “It’s been predicted for a long time because the streak of the Mag Seven is really quite unprecedented.” “That would be a turnaround, certainly from the last three years, but still leading to a very good market in 2026,” Siegel added. Despite his bullish stance, the professor emeritus noted some near-term headwinds for the stock market. These include another potential government shutdown and announcement on the next Federal Reserve chair, alongside the Supreme Court potentially striking down the tariffs President Donald Trump imposed by invoking the International Emergency Economic Powers Act. “We need to get through some bumps, as I say. But if we can get through those successfully, it still looks like a positive year for me,” Siegel said.
