The Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite rose Friday as the stock market bet on Fed rates cuts and the tech rally rolled on.

Two of Wall Street's time-tested forecasting tools -- one of which has been back-tested 155 years -- portend trouble for stocks in the new year. Leaning on time and perspective can turn short-term pain on Wall Street into a generational investment opportunity for long-term investors.

The S&P 500 gave up 0.2%, with Pfizer off more than 3%. The tech-heavy Nasdaq composite edged into positive ground with a 0.2% gain on Tuesday. The tech-dominated index broke a three-day losing streak.

Major stock indexes surged Thursday after delayed Consumer Price Index data came in better than expected, with the blue-chip Dow Jones Industrial Average and benchmark S&P 500 poised to end four-session losing streaks.

Wall Street analysts expect another strong year in stocks in 2026, propelled by continued AI sector gains and additional Fed interest-rate cuts.

As things stand now, we're set to enter 2026 with the second priciest stock market in history. Should things go south on Wall Street in the new year, as history has foreshadowed, one exchange-traded fund (ETF) stands out as a truly genius buy for 2026.

Bearish conditions on Wednesday turned bullish by Friday's close, with the S&P 500 and Nasdaq back above their 50-day lines. Palantir and GE lead a slew of new buys.