The US Economy May Surprise In 2026 â And Small Caps Could Benefit
A growing number of Wall Street economists, led by Bank of America, are optimistic about the U.S. economy, predicting 2026 GDP growth of 2.8%, surpassing the consensus of 2.1%. Key factors include the One Big Beautiful Bill Act, expected to provide significant consumer stimulus. The labor market remains strong, with a 4.4% unemployment rate, and resilient consumer spending. Bank of America suggests small-cap stocks may benefit from this growth, as they typically see faster earnings revisions in a strengthening economy. Upside risks include AI investment and improved productivity.
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