Mijuško Šibalić
The S&P 500 has seen impressive returns in 2024 — on a year-to-date basis, the index has risen by 27.35%.
Although the last thirty days have seen a drop in momentum, with a notable 3.41% downswing from December 16 to December 19, the loss was quickly erased in the following days. At present, it would appear that the ‘Santa Rally’, which often sets the tone for the upcoming year, has started.
In an average year, the index marks approximately 18 all-time highs (ATHs) in a year — over the course of 2024, it has notched more than 50, and is currently at an ATH of 6,040. Despite ongoing concerns surrounding Donald Trump’s proposed tariffs, and a potential trade war with China, Mexico, and the European Union, analysts are unequivocally bullish — but their forecasts vary.
While analysts have noted the recent slowdown, they project quite a bit of upside for the S&P 500 in 2025 — although most of them have also warned that short-term corrections are a definite possibility in the first half of the year.
As we draw closer to the the end of 2024, Finbold has delved into recent analysts’ predictions, to provide a clear overview of how high the S&P 500 could go in the coming year.
Wall Street analysts see plenty of upside for the S&P 500 in 2025
Banking giant Goldman Sachs (NYSE: GS) expects the S&P 500 to reach the 6,500 mark in 2025, which would represent a 7.61% increase from current levels. The company’s chief equity strategist, David Kosti, explained that the target is based on the assumption that earnings will grow by 11% and that sales will increase by 5% in the coming year.
Elsewhere, Bank of America (NYSE: BAC) sees a slightly higher (and ominous) mark as a reasonable expectation — setting a 6,666 target for the index in 2025. BofA expects to see stronger earnings growth than Goldman Sachs — estimating that the increase will be closer to 13%.
In addition, the company’s analysts expect to see tailwinds from favorable domestic economic policies in 2025. If met, Bank of America’s forecast would equate to a 10.36% surge from the index’s current value.
The Street high forecast, however, comes from Oppenheimer (NYSE: OPY) chief investment strategist John Stoltzfus, who cited the advent of artificial intelligence as the reason why he set a target of 7,100 for the index, which would equate to a 17.54% increase from current levels.
Featured image via Shutterstock
