Wells Fargo issues Wall Street's most bullish forecast yet for the stock market in 2025

Published On Dec 3, 2024, 3:38 PM

Wells Fargo's equity strategist Christopher Harvey has predicted a bullish outlook for 2025, forecasting the S&P 500 to reach 7,007, suggesting a 26% increase from current levels. This optimistic scenario is based on expectations of a favorable macro environment, expanding corporate margins, and increased M&A activity as the U.S. economy is projected to grow faster than the current consensus of 2.1%. Harvey believes this growth will broaden the rally beyond just the largest tech stocks to the entire S&P 500.

Stock Forecasts

With a significantly bullish forecast from Wells Fargo indicating strong growth in the S&P 500, investors might consider investing in ETFs that track the S&P 500, as they could capitalize on the expected broad market gains. The S&P 500 ETF Trust (SPY) or the Invesco S&P 500 Equal Weight ETF (RSP) could be two viable options. Additionally, considering cyclical stocks or sectors that are expected to gain momentum in a growing economy could also be beneficial.

The projection of a 26% increase in the S&P 500 suggests a positive sentiment around market recovery and growth, particularly in cyclical sectors. Investing in the Invesco S&P 500 Equal Weight ETF (RSP) could allow for exposure to a wider array of stocks in the index rather than being overly reliant on large-cap tech names. This ETF could perform well in a broadening market rally as described by Wells Fargo.

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