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Geopolitical Relief Fuels Record S&P 500 Gains and Elevated 2026 Outlook

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U.S. stock markets have reached record highs as investor confidence grows following a diminished threat from the ongoing conflict in Iran. This shift in geopolitical outlook has driven rising earnings estimates and broad market rallies, pushing the S&P 500 past the 7,000 mark. Consequently, Wall Street analysts now project an 11.8% return for 2026, significantly exceeding the index's historical average.