Top Wall Street bull sees possibility of feverish stock rally fading in second half of 2025
Published On Dec 12, 2024, 4:00 AM
Tom Lee, head of research at Fundstrat, predicts that the S&P 500 could gain another 16% in the first half of 2025 due to favorable conditions like a potential Fed rate-cutting cycle and supportive White House policies. However, he forecasts a slowdown or pullback in the market in the second half, ending the year around 6,600 — indicating a 9% increase from current levels. Lee's analysis highlights a historical pattern of weaker performance following consecutive years of significant gains in the market. He also sees opportunities in small-cap stocks due to potential deregulation and M&A activity.
Stock Forecasts
SPY
Positive
Possible gains in small-cap stocks and S&P 500 in the first half of 2025 with anticipated supportive conditions. However, expect a market pullback in the second half due to historical trends.
Related News
Strengthening Inflation Poses Challenge for Trump, Fed
Dec 11, 2024, 5:32 PM
The consumer-price index rose 2.7% from a year earlier, a sign that the path to bringing down price pressures remains bumpy.
Chances of Fed rate cut rise despite higher November inflation report
Dec 11, 2024, 3:37 PM
The market sees the probability of another 25 basis point interest rate cut at next week's Federal Reserve meeting as rising despite inflation ticking higher in November.
A cautious Fed on track for one last 2024 cut followed by a 'slowing down' in 2025
Dec 11, 2024, 9:48 AM
A fresh inflation reading that met Wall Street expectations is likely to keep the Federal Reserve on track to cut interest rates again next week, but some central bank watchers believe the Fed will signal a more cautious approach to 2025.