(NEW YORK) — If you’re looking for a new set of wheels next year, the choices can be overwhelming.

From 3-row SUVs to wagons and futuristic electric vehicles, buyers can select from a wide range of powertrains, prices and body styles.

Which models are already generating excitement in the industry? ABC News spoke to several insiders to get their take on the hottest vehicles headed to showrooms.

Mercedes-Benz CLA and GLB

The German automaker has a busy 2026 schedule planned with the launches of several newly updated models, including the CLA sedan, GLB SUV and the flagship S-Class.

Mercedes’ designers reimagined the interior of the GLB, which can be configured for five or seven passengers. The latest model offers greater comfort: headroom has increased as well as legroom for second-row passengers. A new panoramic roof is standard and owners can opt for a “floating” MBUX Superscreen that extends across the entire dashboard.

Buyers have three powertrains from which to choose. There’s a new 1.5-liter, inline-4 gasoline hybrid, and two electrics: the 250+ (268 horsepower) and 350 4MATIC (349 hp). The GLB can charge up to 260 kilometers (162 miles) of range in 10 minutes, according to Mercedes, and the hybrid version drives in electric-only mode at city speeds.

The latest CLA, available as an electric sedan ($47,250 for the 250+ and $49,800 for the 350 4MATIC) and hybrid, may be even more important for the luxury automaker. The entry-level car packs a ton of tech inside, making it “among the most intelligent vehicles from Mercedes-Benz to date,” according to the automaker.

The same four-cylinder turbocharged engine in the GLB powers the CLA220 hybrid, which is mated to an eight-speed dual-clutch transmission. A large, fixed panoramic glass roof in the CLA helps make the interior feel larger and more spacious. The CLA hybrid will be easy to spot at night: its radiator grille is adorned with the Mercedes‑Benz star pattern in chrome.

The electric CLA can travel 374 miles on a charge, according to Mercedes. Underneath the shell is an 800-volt electrical architecture, which allows the 48-volt lithium-ion battery to recoup roughly 200 miles in 10 minutes. DC fast charging up to 320 kilowatts (kW) is possible, too.

“It’s our vision for an EV to charge like fuel. We’re pushing the limits of what is possible with the CLA. Range anxiety will go away,” according to Markus Schäfer, a Mercedes board member and its chief technology officer.

The marque’s suite of advanced driver assistance systems is also available in the CLA models. Pricing for the GLB and CLA hybrid will be announced in 2026.

Kia K4 Hatchback

The K4 Hatchback, a stylish wagon that debuted in April, starts at $24,890 and will be available for sale in early 2026.

“I am so excited for it,” Robby DeGraff, manager of product and consumer insights at AutoPacific, told ABC News. “Hatchbacks might be making a comeback. It has a humongous cargo area and will be fun to drive. In terms of value, this should be a winner.”

A 2.0-liter engine produces 147 horsepower and 132 lb-ft of torque. For a sportier ride, consumers can choose the GT-Line Turbo model ($28,790); the 1.6-liter, turbocharged engine makes 190 hp and 195 lb-ft of torque.

The K4 Hatchback is also a new design for the Korean automaker and comes equipped with features like a heated steering wheel, Harman Kardon audio system and Digital Key technology that allows an owner’s smartphone to function as virtual key.

Degraff said Kia’s latest iteration of the Telluride SUV, now available with a hybrid powertrain, should also be popular with consumers.

“A hybrid Telluride is long overdue — we will see a big take rate for the hybrid version,” he said. “Losing the V6 [engine] will be a bummer for some people … there are shoppers out there that want a V6 in their 3-row SUVs. But the Telluride will be hit no matter what.”

According to Kia, the turbo hybrid powertrain adds more power and acceleration than the previous model: a combined 329 hp and 339 lb-ft of torque. The driving range is an estimated 600 miles. Kia’s flagship SUV, including the X-Line and X-Pro variants, go on sale in Q1 of 2026 and will be assembled at Kia’s plant in Georgia.

“The Telluride changed what Kia is,” according to Tony Quiroga, editor-in-chief of Car and Driver. “There was a ton of value in the first generation. The new Telluride looks more expensive than it will be and probably start around $40,000.”

“This version gives off a Range Rover vibe,” Quiroga added.

Subaru Outback

Subaru packed a ton of new tech in the latest Outback, including a 12.1-inch high-resolution infotainment screen and advanced driver assistance features. Drivers can now enable a Hands-Free Assist function that works at speeds up to 85 mph on highways.

The automaker is calling the 2026 Outback “the most connected and capable Subaru yet” with the “biggest styling updates in the model’s history.”

DeGraff said the SUV’s updated styling – a new front fascia, larger grille and boxier profile – could be “make or break” for consumers, but the amenities are a “good value” and Subaru still offers “the best all-wheel drive system in the entire industry.”

For Quiroga, the design changes make the Outback look more like a traditional SUV versus a lifted wagon.

“The latest Outback has the refinement and practicality of a wagon but is still very car-like. I see that as a plus,” he said.

The seventh-generation Outback starts at $34,995 for the Premium trim.

Chevy Bolt

The polarizing Chevy Bolt, one of the few affordable EVs to be sold in the U.S, will make its return as a 2027 model, though production will be limited.

The Bolt had both its fans and detractors; the unpretentious crossover won over motorists for its range and simplicity at an appealing price.

The latest trims – the Bolt RS and LT – will start under $30,000 and charge 2.5x faster than the previous model. Owners can expect to get 255 miles of range on a fully charged battery. The Bolt also is the first Chevy to be fitted with a NACS [North American Charging Standard] charging port. Deliveries begin in the first half of 2025.

“We really like the old Bolt, it had a ton of practicality,” said Quiroga. “The upcoming Bolt has a bit more range and a newer battery.”

Added DeGraff: “The 2027 Bolt is a clone of the outgoing one but it has more modern tech. It has all the safety features and Super Cruise. For budget shoppers who want to go electric, the Bolt is a home-run product.”

BMW iX3

The all-new iX3, BMW’s first series-production Neue Klasse model, goes on sale in summer of 2026 and will be a “hugely important vehicle” for the marque, according to Alistair Weaver, editor-in-chief of Edmunds.

The compact sport utility vehicle’s ($60,000) two-box design underwent a dramatic metamorphosis, with the latest iteration taller, longer, wider and more commanding. It also has a range of up to 400 miles, according to BMW. Plus, the company’s 800V architecture could be a game-changer for the industry: BWM said iX3 drivers can add nearly 175 miles of range in less than 10 minutes (it has a maximum charging rate of 400 kW). The vehicle’s dual-motor all-wheel drive powertrain makes 463 hp and 476 lb-ft of torque.

“Most EV owners are happy with 300 miles, but this will do 400, and it can recharge almost twice as fast as a Tesla,” Jared Rosenholtz, editor at large for CarBuzz, told ABC News. “Not only is range anxiety gone, but so is motion sickness. You can not feel the regen braking working in the iX3. It’s the smoothest braking I’ve ever felt in my decade of reviewing cars. All of this will be available for just over $60,000, not $100,000.”

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(NEW YORK) — The stock market surged to record highs in 2025, hurtling past tariffs, a government shutdown and fears of a bubble in artificial intelligence.

The S&P 500 — the index that most people’s 401(k)s track — climbed about 17% this year, as of Dec. 23. That performance marks a slight slowdown from two consecutive years of more than 20% growth, but the latest uptick extends a run of gangbusters returns.

The yearslong bull market presents a stark choice for investors as the calendar turns to 2026: Flee from ever-higher stock prices or trust that the good times will continue to roll.

Earlier this month, investment bank Morgan Stanley summed up its market forecast with a single question: “Can the bull market endure?”

Analysts attributed the rise of share prices this year to overlapping trends: Resilient corporate earnings, a series of interest-rate cuts meant to boost hiring and near-inexhaustible enthusiasm for artificial intelligence.

Tariffs, which threatened to derail markets in the spring, eased into an afterthought over the latter half of the year.

A day after tariffs were announced on April 2, major stock indexes shed about $3.1 trillion in value. The selloff amounted to the biggest one-day decline in markets since the onset of the COVID-19 pandemic. Days later, a major swathe of the tariffs were suspended, sending the market to one of its largest ever single-day increases.

“While tariffs remain a source of uncertainty, markets are pricing in limited disruption,” JPMorgan Wealth Management said in an investor note last month.

Even as markets proved resilient, the gains this year remained concentrated in a handful of tech giants, known as the magnificent seven: Alphabet, Amazon, Apple, Meta, Microsoft, Tesla and Nvidia. In September, worries over AI threw cold water on those stocks, causing their prices to waver.

In November, blockbuster earnings from chip giant Nvidia helped rebuke AI fears and shake markets out of the doldrums. Nvidia recorded $57 billion in sales over a three-month span, the company said, setting a quarterly sales record and demonstrating near-bottomless demand for the semiconductors at the heart of AI.

Nvidia, the world’s largest company by market capitalization, soared 40% this year, as of Dec. 23.

Still, some analysts have continued to voice concern about the market’s dependence on AI, as tech firms face increased pressure to turn massive capital investment into profits.

“Equity markets may remain exuberant but face rising risks,” investment giant Vanguard said in December, citing AI as a threat to growth.

Other risks abound, some analysts said. Key measures of the U.S. economy have shown mixed results, making the path forward uncertain. Hiring slowed sharply this year, while inflation remained about a percentage point higher than the Fed’s 2% goal. Economic growth withstood headwinds from tariffs and elevated interest rates, but consumer sentiment sputtered.

Ultimately, Vanguard said its baseline expectation remains optimistic, forecasting overall stock returns next year as high as 8%.

Some analysts predicted even better performance in 2026. JPMorgan Wealth Management predicted stock gains next year between 13% and 15%. BNY Wealth estimated the S&P 500 would end 2026 as high as $7,600, which would amount to about a 10% jump from where the index stood on Dec. 23. Morgan Stanley also forecasted an increase in 2026 of 10%.

In response to its own question about whether the bull market could endure, Morgan Stanley answered with little doubt, saying the odds of a recession next year are “extraordinarily low” and the upswing in stocks “still has room to run.”

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