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Capital Markets Update

Explore the current economic themes that are driving global financial markets in this market outlook from the FI Capital Markets Strategy Group.

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Created with advisors and wealth managers in mind, the Capital Markets Update brings together the views of research teams and asset class specialists from across Fidelity. Produced by the Capital Markets Strategy Group at Fidelity Institutional, this investing outlook is supported by market data and in-depth economic analysis.

You can browse a selection of our insights below. Investment professionals can log in to view the full report, including actionable outlooks and key themes for a range of traditional and alternative asset classes.

Read our new 2026 market outlook and positioning report to discover key themes and trends shaping global markets in the new year.

Q1 2026 market outlook and positioning

A brief summary of insights from the full report

Corporate fundamentals and policy stimulus support constructive outlook.

Key Takeaways
  • Risks remain, but FI's Capital Markets Strategy Group continues to see a constructive market, driven by strong corporate fundamentals, healthy inflation, and a pick-up in M&A activity.
  • The One Big Beautiful Bill Act (OBBBA) is expected to inject meaningful cash into the economy, creating an opportunity for advisors to talk to clients about how refunds may boost spending and earnings.
  • The market expects technology-led, double-digit earnings growth in both 2026 and 2027, and is optimistic that improved market breadth could support small-mid caps, cyclicals, and international equities, underscoring the need for active allocations.
  • The Capital Markets Strategy Group's optimistic scenario also supports select commodities, real estate, and options-based strategies.

Investing ideas

  • Intermediate duration bonds
  • Balanced domestic equities
  • International diversification
  • Small and mid-capitalization

Commentary
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Get all of our current asset class views in one place, plus charts that show the data and analysis supporting our outlook.

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More insights from the FI Capital Markets and Asset Class Specialist teams

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Meet the FI Capital Markets and Asset Class Specialist teams

The FI Capital Markets Strategy Group synthesizes economic analysis and market outlooks from across Fidelity to provide timely, actionable perspectives for financial advisors and institutional investors. Our Asset Class Specialist team offers in-depth analysis and positioning views focused on equity, fixed income, and alternative investments, including a range of ETF offerings.

Brad Pineault
Vice President, Head of Capital Market Strategists
Michael Scarsciotti
SVP, Head of Investment Specialists
Anu Gaggar
Vice President, Capital Markets Strategy
Bryan Sajjadi
Vice President, Capital Markets Strategist
Mehernosh Engineer
Vice President, Capital Markets Strategy
Seth Marks
Vice President, Capital Markets Strategist
David Delleo
Vice President, Investment Insights
Vino Ravichandran
Quantitative Analyst
Provides current themes and views of the Capital Markets Specialist Group within Fidelity Institutional, as of 12/1/2025. Individual views or outlooks may differ. Views are not intended to be substitutes for strategic asset allocation and reflect market views based on current economic conditions. Diversification does not ensure a profit or guarantee against a loss. The statements and opinions are subject to change at any time, based on market and other conditions.
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