Wall Street institutions believe that the growth drivers of the US stock market may change next year.

According to DataTrek Research's analysis, by 2026, the performance expansion of the S&P 500 will no longer be dominated solely by the technology sector, but will instead show a more balanced growth across various sectors. Co-founder Nicholas Colas pointed out that this round of growth will depend on both the continued strength of technology and a recovery in the fundamentals of traditional cyclical industries (such as finance, raw materials, industrials, etc.) to sustain it.

What does the data say? The current expected P/E ratio of the S&P 500 has already reached 22.3x. What does this valuation level mean? Simply put, the market has already priced in optimistic expectations. For this valuation to be justified, the US economy must maintain steady growth throughout the year without faltering.

For traders, this means that 2026 may not be a one-sided rally focused solely on tech stocks. Instead, they should pay attention to which neglected traditional industries might take turns rising.