Ibex-35 Historical Rally Faces 2026 Challenges

The Spanish stock market closed the previous year with a historic performance, overcoming significant global uncertainties. The Ibex-35 achieved a revaluation of nearly 50%, marking a robust period for Spanish equities.

Key drivers included the banking and energy sectors, alongside a standout performance by the defense company Indra. As the market enters the new year, the central question remains the longevity of this bullish trend.

The Spanish stock market successfully closed out a transformative year, displaying resilience against a backdrop of international instability. The Ibex-35 secured a revaluation of nearly 50%, a milestone that underscores the strength of the domestic market despite external pressures.

Market activity was influenced by several geopolitical factors. The global landscape was marked by the trade war initiated by the United States and persistent military conflicts in regions such as Ukraine and the area between Israel and Palestine. Despite these headwinds, the Spanish market managed to reach a maximum of 17,354 points in the final days of the year.

The surge in the Ibex-35 was not uniform; it was propelled by specific sectors that demonstrated exceptional strength. The banking and energy sectors provided a solid foundation for the index's rise.

However, the most notable individual performance came from the defense industry. The company Indra distinguished itself as the value that experienced the most significant increase. This growth is directly attributed to the rearmament winds blowing across Europe, which have boosted defense-related stocks.

As the calendar turns to the new year, market participants are actively debating how long the current rally can be sustained. The primary concern for investors is whether the momentum from the previous year can overcome the lingering uncertainties that characterized 2025.

Despite these valid concerns, the initial mood among market players is one of optimism. Major investors and analysis houses are reportedly maintaining a positive stance at the start of the year, suggesting that the market may have further room to run.

The Ibex-35 enters the new year on a strong footing, having achieved a historic revaluation driven by banking, energy, and defense stocks. While the shadow of global trade wars and military conflicts looms, the prevailing sentiment among investors remains optimistic. The market's ability to navigate these challenges will determine if the record-breaking performance of the past year can be replicated.