A Roadmap to Effective and Resilient Markets

Why strong capital markets are essential to economic growth, financial stability, and long-term investment

As part of SIFMA’s 2026 Capital Markets Outlook, our leadership reflects on the importance of effective and resilient capital markets and the policy priorities shaping the year ahead.

Capital markets are fundamental to the strength of our economy. They power growth, allocate capital, and support financial stability. By connecting households, businesses, and governments seeking capital with investors looking to put their assets to work, the capital markets fuel innovation, job creation, and long-term economic opportunity.

The United States benefits from the deepest, most liquid capital markets in the world – an essential pillar of American economic leadership and global competitiveness. As the voice of the U.S. securities industry, SIFMA represents hundreds of broker-dealers, investment banks, and asset managers whose clients include businesses and corporations, governments and municipalities, endowments and foundations, and institutional and individual investors. Every day, our members help clients access capital, invest assets, manage risk, and navigate complex financial decisions, delivering advice, products, and services that support long-term goals and financial security.

At SIFMA, we believe vibrant and healthy capital markets are built through sound market structure, clear rules, and strong investor protections. Fair and efficient markets require a commitment to:

• High standards of market integrity and investor protection, underpinning trust and confidence;
• Capital formation through savings and investment, enabling growth and innovation;
• Financial literacy and a strong retail investor culture, supporting informed participation; and
• Regulatory frameworks calibrated to foster innovation and growth, while preserving stability and resilience.

Market performance in 2025 reflected both resilience and momentum, with the S&P 500 returning approximately 20 percent, supported by earnings strength and active trading. Looking ahead, capital formation and mergers and acquisition activity are expected to improve. At the same time, valuations remain elevated, and the outlook for 2026 points to moderate growth, easing—but still present—inflationary pressures, and a gradual path toward Federal Reserve rate reductions. In this environment, disciplined risk management and well-functioning market infrastructure will be critical.

Investor trust in the financial industry remains strong, but expectations are evolving. While Baby Boomers have traditionally emphasized performance and long-term returns, younger generations increasingly expect immediacy, transparency, and control. With an estimated $100 trillion in assets set to transfer to younger investors in the coming decades, firms are navigating how best to deliver digital access and personalization while maintaining education, guidance, and safeguards that support long-term financial well-being. Aligning innovation with investor protection will remain a central challenge—and opportunity—for the industry.

SIFMA’s core mission is to advocate for effective and resilient capital markets. We do so by serving as a bridge between the end users of the capital markets and policymakers, engaging lawmakers, regulators, and market participants with deep subject matter expertise across legislative, regulatory, and business issues. Among the most consequential issues facing the industry are the implementation of the central clearing mandate for the U.S. Treasury market; revisions to capital and leverage frameworks, including the Basel III Endgame and GSIB surcharge; growth in and access to private markets; and the continued development of digital asset markets. Each of these issues carries meaningful implications for market liquidity, operational readiness, and the ability of markets to function effectively.

We appreciate your engagement and look forward to continued collaboration to ensure our U.S. capital markets remain effective, resilient, and positioned to support economic growth and opportunity.