2026 MIDYEAR MARKET OUTLOOK

LPL Research is pleased to present Midyear Outlook 2026: Policy, Buildouts, & Bottlenecks. Watch the Webinar or read the full report here: 2026 Midyear Outlook to get a comprehensive analysis of the economic and market environment and highlights potential implications for investors and their portfolios.

Looking back at the first half of 2026, markets faced some challenges expected by investors, and some that were unexpected. A new Federal Reserve (Fed) chair stepped into one of the most difficult monetary policy environments in years. Conflict in the Middle East pushed oil prices sharply higher and sent ripples through global markets. And a technology spending boom, unlike anything seen before, began reshaping the corporate landscape in ways that are still playing out. Through it all, stocks climbed, the economy kept growing, and corporate profits surprised meaningfully to the upside.

As we turn our attention to the second half, we remain constructively optimistic. Optimistic because the fundamental drivers of this bull market, including real earnings growth, artificial intelligence (AI) execution, and a resilient economy, remain intact. Cautiously constructive because we recognize that markets have already priced in a great deal of good news, and that the months ahead will bring their own set of tests, from a new Fed chair navigating a tricky inflation environment to the approach of midterm elections in November.

We believe staying engaged with the opportunities in stocks, collecting income from bonds, and maintaining the flexibility that a diversified portfolio provides is the right posture for navigating both the promise and the uncertainty that lies ahead. Your financial advisor can help you ensure your portfolio reflects your goals, your time horizon, and your comfort with risk as markets continue to evolve.

IMPORTANT DISCLOSURES

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. The economic forecasts may not develop as predicted. Please watch the Webinar or read the full report here: 2026 Midyear Outlook for additional description and disclosure. This research material has been prepared by LPL Financial LLC.