2026 Midyear Outlook: Policy, Buildouts, & Bottlenecks

Markets in 2026 continue to be shaped less by traditional fundamentals and more by policy, geopolitics, and structural change.

From Federal Reserve leadership transitions to upcoming U.S. midterm elections, policy decisions are influencing everything from interest rates to market volatility.

At the same time, geopolitical tensions, including disruptions in global energy markets, have added a new layer of uncertainty.

Meanwhile, artificial intelligence continues to be a powerful driver of growth. But as the cycle matures, investors are shifting focus from infrastructure buildout to monetization and return on investment.

In this environment, LPL Research believes:

• Economic growth may moderate but remain positive

• Stocks could see modest gains, supported by earnings and AI

• Bonds may play a key role in generating income

• Alternatives can enhance diversification and resilience

With markets increasingly sensitive to policy shifts and external shocks, maintaining a balanced, diversified portfolio may be more important than ever.

To explore these themes and how they may impact portfolios, read the full 2026

Midyear Outlook.

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 read the full 2026 Midyear Outlook: Policy, Buildouts, & Bottlenecks for additional description and disclosure. This research material has been prepared by LPL Financial LLC. Tracking #1131121 / LPLE #1131379 (Exp. 06/27)