Wells Fargo analyst Ohsung Kwon put out his 2026 outlook, and predicts that the S&P 500 will end the year at 7800

US stocks gave up early gains to end lower after economic and rate uncertainty topple strong earnings from AI darling Nvidia and retail giant Walmart.

The three biggest US stock indexes resumed their slide on Thursday, reversing course after an early morning rally. The S&P 500 ended the day 1.5% lower, the Dow Jones Industrial Average fell 0.8% and the Nasdaq lost more than 2%. On Friday, major stock markets in Asia also lost ground.

Hedge funds were caught on the wrong side of a sharp two-day swing in the stock market, rushing to protect against losses on Thursday only to unwind those positions a day later as prices snapped back.

Wall Street stocks closed sharply higher on Friday as rising expectations of a December interest rate cut by the Federal Reserve offset concerns over lofty tech valuations.

Asian semiconductor stocks tumbled on renewed fears of an artificial-intelligence bubble, tracking U.S. declines from Thursday. European chip shares fell too. Shares in [Samsung Electronics](

Value stocks in the U.S. were beating growth equities Friday afternoon, even as the S&P 500’s technology sector rebounded. The Russell 1000 Value Index was up 1.9%, while the Russell 1000 Growth Index was rising 1.

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It was shaping up to be a positive end for an otherwise turbulent week for stocks amid broad concerns about the U.S. labor market and whether big tech companies — responsible for much of the market's gains this year — will be able to justify their sizable investments in artificial intelligence.

When it comes to following momentum strategies in the stock market, all are based on the same basic premise: Stocks that have recently performed the best are likely to continue performing well for a while longer. The difference between the various strategies boils down to how to put that premise into practice.