S&P 500 Performance Analysis in Midterm Election Years
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 04 2026
0mins
Should l Buy FDS?
Source: NASDAQ.COM
- Historical Performance Analysis: Since its inception in 1957, the S&P 500 has averaged an 18% decline during midterm election years, with a 70% chance of entering correction territory in 12 out of 17 elections, indicating significant market volatility may be expected in 2026.
- Post-Election Rebound Trend: Despite the uncertainty typically associated with midterm elections, historical data shows that the S&P 500 averages a 14% increase in the six months following elections, providing investors with a potential rebound opportunity.
- Future Expectations and Risks: Wall Street anticipates the S&P 500 will reach 8,146 by February 2027, implying a 17% upside from current levels; however, short-term predictions are often inaccurate, with an average deviation of 16 percentage points in the past four years.
- Investment Strategy Recommendations: Given the potential market corrections in midterm election years, investors are advised to limit stock purchases to their highest-conviction ideas and consider building a cash position in their portfolios to mitigate potential market volatility.
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Analyst Views on FDS
Wall Street analysts forecast FDS stock price to rise
12 Analyst Rating
1 Buy
7 Hold
4 Sell
Hold
Current: 224.860
Low
253.00
Averages
295.91
High
326.00
Current: 224.860
Low
253.00
Averages
295.91
High
326.00
About FDS
FactSet Research Systems Inc. is a global financial digital platform and enterprise solutions provider. The Company's solutions deliver financial data, analytics, and open technology to global clients, including individual users. Its segments include the Americas, EMEA and Asia Pacific. It provides financial data and market intelligence on securities, companies, industries and people to enable its clients to research investment ideas and analyze, monitor and manage their portfolios. It supports various workflows, including investment research, quantitative research, portfolio management and trading, portfolio analytics, wealth management, ESG investing solutions, industry analysis and data solutions. It provides open and flexible technology offerings, including a configurable desktop and mobile platform, and comprehensive data feeds. Its technology also includes LogoIntern, a workflow tool to streamline the task of adding, organizing, and formatting logos into pitch decks.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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