Is Wall Street heading towards a massive crash by 2026-end? Here's what history may be hinting at

Historical data shows US markets have entered correction territory in about 70% of midterm election years since 1957, with bear markets occurring roughly 35% of the time, raising concerns about a potential Wall Street downturn ahead of November 2026 midterms. However, the six-month period following midterm elections (November to April) has historically delivered an average S&P 500 return of about 14%, and the median Wall Street target puts the S&P 500 at around 8,989 by July 2027. Adding to bearish sentiment, South Korea's Kospi has plunged over 30% from its June peak on AI bubble concerns, while investor Michael Burry has ramped up bets against leading chipmakers, warning of Dotcom-style valuation risks.