The strategists of Wall Street envision another excellent year for the S&P 500 in this year 2025. The major banking institutions expect healthy appreciation with only marginal rates of lowering earnings per share. The 500 index is predicted to grow 10 %, with the index reaching 6,500 points by the end of the year, accompanied by U.S economic growth and an 11% EPS growth for the 500 companies in the index, according to Goldman Sachs (GS, Financial). Still Goldman sourly points out that the ''magnificent seven'' have not and will not deliver those stellar returns again, indicating that the AI darlings, Nvidia (NVDA, Financial), and Apple (AAPL, Financial) are among the top, which are shifting Main Street investment participation.
Morgan Stanley targets 6,500 and takes a cautiously optimistic view of 13% EPS growth with downside risks in case of elevated political risks after the elections. The firm also estimates a broad spectrum, including a 26 percent bull case at 7,400 and a 28 percent correction at 4,600. UBS has a target of 6650, although it is only somewhat more optimistic than the consensus; BMO Capital Markets sees an upside of 14% based on the firm's earnings growth and the rate cut expected from the Fed.
As with many of these forecasts, it points to the bright side except for a warning from Goldman'sGoldman's David Kostin, who notes that indices have been propped up by a few stocks, which suggests that it cannot sustain a long-term. Yardeni Research is still bullish, with 7,000 figures invoking the possibility of the economic effects of Trump's return. Though Wall Street's forecasts show risks and returns, expectations as we approach 2025 remain a key struggle.
