Stock Market Predictions for 2025: A Mixed Bag of Expectations from JPMorgan Chase and Goldman Sachs

The stock market predictions for 2025 have recently been published, presenting a spectrum of forecasts that range from modest growth to the possibility of a recession. The S&P 500 and Nasdaq 100 have seen impressive growth since 2022, but the outlook for the future is uncertain.

Overview of Expectations: A recent report indicates that the average year-end target for the S&P 500 in 2025 is set at 6,539, which would mean an approximate increase of 8% from current levels. Nevertheless, these predictions show a wide variation.

Strategist Peter Berezin from BCA Research warns of a recession in 2025, forecasting a significant 26% decline in the S&P 500. He links this prediction to a global economic slowdown and the potential for a trade war triggered by the next U.S. administration.

On the other hand, Barry Bannister, chief equity strategist at Stifel, foresees a market correction ranging from 10% to 15% caused by extreme valuations in the stock market.

In contrast, Goldman Sachs anticipates an 11% increase in corporate profits, thanks to a projected 2.5% annual growth in the U.S. economy and a 5% rise in corporate revenues.

Mike Wilson, Chief Investment Officer at Morgan Stanley, encourages investors to maintain a positive outlook for stocks in 2025, citing possible interest rate cuts from the Federal Reserve and prospects of deregulation under the emerging administration.

Meanwhile, JPMorgan Chase has shifted its stance, moving from a bearish to a bullish outlook for 2025, raising its price target for the S&P 500 to 6,500, driven by a growing business cycle and continued earnings growth. UBS concurs, setting a price target of 6,600 for the index.

However, Ned Davis Research raises alarms about potential risks that could threaten the bull market as 2025 unfolds. Plus, Savita Subramanian from Bank of America predicts more moderate gains spread across various sectors.

Despite the mixed predictions, Wall Street maintains a cautiously optimistic viewpoint regarding the stock market's future in 2025.

S&P 500 Price Targets for 2025

Here are some projected end-of-year price targets for the S&P 500:

• Oppenheimer: 7,100
• Wells Fargo: 7,007
• Deutsche Bank: 7,000
• Yardeni Research: 7,000
• DataTrek Research: 6,840
• Societe Generale: 6,750
• BMO: 6,700
• Bank of America: 6,666
• Fundstrat: 6,600
• Barclays: 6,600
• RBC: 6,600
• Ned Davis Research: 6,600
• CFRA: 6,585
• Morgan Stanley: 6,500
• Goldman Sachs: 6,500
• JPMorgan Chase: 6,500
• Citi: 6,500
• UBS: 6,400
• Stifel: 5,500
• BCA Research: 4,450

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