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Wells Fargo upgraded Gap to Overweight and Victoria's Secret to Equal Weight on December 16, anticipating a retail sector recovery in 2026 driven by potential tariff relief of 150-200 basis points.
U.S. markets are exhibiting historically low volatility as investors anticipate a Federal Reserve rate cut. The S&P 500 is near its all-time high, but this calm could be disrupted by a hawkish policy surprise.