Wharton’s Jeremy Siegel: Labor Market Conditions Signal Positive 2026 Market Outlook

The event occurred on December 24, 2025 (EST), when Jeremy Siegel appeared on CNBC’s Squawk on the Street to share his year-end assessment of economic and market conditions.

This analysis draws from Siegel’s CNBC interview [1], where he highlighted the labor market as a critical driver of positive 2026 market prospects. The analysis focuses on macroeconomic implications, as no ticker-specific news was identified [0]. Siegel’s outlook links labor market resilience to consumer spending, economic growth, and potential Federal Reserve policy shifts.

Siegel’s core argument centers on the labor market as a foundational pillar of economic health. A strong labor market supports sustained consumer spending—accounting for a significant portion of economic activity—which in turn can boost corporate earnings and equity market performance. Siegel also noted that labor market dynamics could influence Federal Reserve policy, suggesting that continued labor market strength (balanced with inflation trends) might lead to more accommodative measures, further supporting market conditions. The Market News Analysis confirmed the absence of ticker-specific news [0], so the discussion remains focused on broader market trends rather than individual securities.

1. Labor Market-Led Growth
   : Siegel’s perspective reinforces the historical correlation between labor market resilience and long-term market momentum.
2. Year-End Sentiment Impact
   : His comments, timed during a period of low trading activity around the holidays, could shape investor expectations heading into 2026 as markets resume full activity.
3. Fed Policy Link
   : The potential for labor market data to influence Fed decisions introduces a critical variable for monitoring future market conditions.

: A resilient labor market could sustain consumer demand, driving economic growth and supporting market gains in 2026.
: Unexpected shifts in labor market data or misalignment between Federal Reserve policy decisions and market expectations could introduce volatility. Without ticker-specific data [0], these factors carry generalized implications for the broader market rather than specific companies.

Jeremy Siegel, Wharton professor emeritus, stated on December 24, 2025, that current labor market conditions are setting the stage for a positive 2026 market outlook. The analysis focuses on macroeconomic trends due to the absence of ticker-specific news [0]. The outlook ties labor market strength to consumer spending, corporate earnings, and potential Federal Reserve policy shifts, highlighting both opportunities and risks for the broader market.