S&P 500 Is Back in the Green for 2026 on Trump Davos Remarks

Watch on YouTube ↗  |  January 21, 2026 at 19:36  |  6:40  |  Bloomberg Markets
Speakers
Julian Emanuel — Evercore ISI

Summary

Julian Emanuel of Evercore ISI discusses his 2026 outlook from Davos, where geopolitics and tariffs have returned as market concerns. He expects a more volatile fourth year of the bull market, with multiple drawdowns to buy and an S&P 500 target of 7,750 by year-end. He sees AI and technology skepticism as a contrarian opportunity and expects higher US Treasury yields driven by Japanese yields, fiscal expansion, and the end of the 40-year bond bull market.

  • Stocks rebounded after a sharp selloff and the S&P 500 returned to positive territory for 2026.
  • Julian Emanuel expects higher equity volatility in the fourth year of the bull market.
  • He targets the S&P 500 at 7,750 by year-end and advises keeping cash for drawdowns.
  • He views widespread AI and technology skepticism as a contrarian long setup.
  • He expects Japanese yields and fiscal expansion to push US Treasury yields higher.
  • He argues the 40-year secular bond bull market ended in 2020 and a higher-yield regime is likely to continue or reassert.
Ideas
Julian Emanuel Evercore ISI 1:03
AI skepticism is contrarian long opportunity.
Julian Emanuel argues that heavy skepticism around debt financing, stressed credit default swap markets, and pressured hyperscaler shares has depressed sentiment enough that AI and technology are contrarian plays. He says this setup makes him very excited.
AI-SECTOR XLK SKYY HIGH
Julian Emanuel Evercore ISI 1:55
Expect multiple bouts of higher volatility.
He says the bull market is in its fourth year and should be more volatile now that early-year complacency is gone. He expects multiple bouts of higher volatility and advises holding cash to deploy into drawdowns.
Equity volatility HIGH
Julian Emanuel Evercore ISI 4:03
S&P 500 target 7,750 year-end.
Emanuel expects solid GDP and company survey data to support revenues and earnings, but he expects a bumpier path with multiple 5% drawdowns that should be bought. He targets the S&P 500 at 7,750 by year-end.
SPY HIGH
Julian Emanuel Evercore ISI 5:15
Higher yields pressure US Treasuries.
Emanuel says exploding Japanese yields increase global competition for capital and must put upward pressure on US yields. He also cites fiscal expansion and the midterms, and argues the 40-year secular bond bull market ended in 2020, leaving a higher-yield regime that is likely to end the recent sideways range.
TLT HIGH
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This Bloomberg Markets video, published January 21, 2026, features Julian Emanuel discussing AI-SECTOR, XLK, SKYY, Equity volatility, SPY, TLT. 4 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Julian Emanuel  · Tickers: AI-SECTOR, XLK, SKYY, Equity volatility, SPY, TLT