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Story perspectives

US Economic Growth to Surge in 2026 Amid Rate Cuts

12/23/2025

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Story summary
  • US economic growth is projected to accelerate in 2026 due to cheaper oil and anticipated Fed rate cuts.
  • Analysts expect cyclical sectors, including banks and retailers, to outpace technology stocks as the S&P 500 gains modestly.
  • Inflation remains a concern, with the personal consumption expenditures index at 2.8%, while the job market slows.
  • Consumer confidence has dipped and retail sales growth has weakened, signaling cautious holiday spending.