Photo by Anna Nekrashevich
As the new year unfolds, Wall Street analysts are projecting a modest growth trajectory for the stock market in 2025, following a remarkable performance in the preceding years. The S&P 500 is expected to rise by approximately 14.8% this year, according to data from FactSet, although this growth is anticipated to be less dramatic than the gains seen in 2023 and 2024.
In 2024, U.S. stocks surged due to strong economic expansion, a decline in inflation, and a series of interest rate cuts by the Federal Reserve, alongside heightened investor enthusiasm following President-elect Donald Trump’s victory. The S&P 500 concluded 2024 with an annual increase of about 23%, marking back-to-back gains exceeding 20% for the first time since 1997 and 1998.
Despite the optimistic forecasts, analysts caution about potential challenges that could hinder stock market growth. Uncertainties surrounding tariff policies proposed by Trump, the possibility of rising inflation, and escalating geopolitical tensions are among the factors that could impact market stability.
Among those with a more optimistic outlook is Christopher Harvey, head equity strategist at Wells Fargo, who anticipates that the S&P 500 will reach 4,700 by the end of 2025, representing a gain of approximately 19%. Meanwhile, Dan Ives, a senior analyst at Wedbush Securities, expressed his expectation of a 25% increase in tech stocks for 2025 due to reduced regulation and a favorable environment for major tech firms like Nvidia and Microsoft.
As analysts prepare their forecasts for the year ahead, they will be closely monitoring critical issues such as potential tariffs and Federal Reserve policy shifts that could influence market conditions throughout 2025.
Sources:
[1] https://www.cnn.com/2025/01/01/investing/what-to-expect-from-stocks-in-2025/index.html
[2] https://edis.ifas.ufl.edu/publication/WC191
[3] https://www.cnn.com/2024/12/31/investing/stock-market-end-of-year-wrap/index.html
[4] https://edis.ifas.ufl.edu/publication/WC193
[5] https://www.cnn.com/2025/01/03/investing/stock-market-2025/index.html
[6] https://www.linkedin.com/pulse/how-write-quote-research-news-story-richard-berks
[7] https://www.cnn.com/markets/stocks/YOU
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