Wall Street maintains an optimistic outlook for emerging markets in 2026.

Golden Finance reports that major banks on Wall Street are preparing to achieve new successes in emerging markets, expecting that a weak dollar and a surge in investments in the artificial intelligence sector will provide further momentum for this asset class. These favourable information factors are expected to drive further rise in emerging markets, with local currency bonds offering investors a 7% return, the best performance since 2020, and the currency index also rising over 6%. Morgan Stanley strategists point out that as the U.S. economy slows down, the Fed may further cut interest rates, which will support the continuation of the market pump. The bank advises clients to maintain long positions in emerging market local currency bonds, expecting returns to reach around 8% by mid-2026. For emerging market dollar bonds, it predicts a “high single-digit” rise over the next 12 months.