Investors hope for US stock market trifecta in 2025 after back-to-back boom years

Published On Dec 31, 2024, 5:01 PM

Investors are optimistic about the U.S. stock market in 2025 following two consecutive years of strong gains. The S&P 500 rose 23.31% in 2024 and a total of 53.19% over the last two years, driven by strong corporate profits, moderating interest rates, and supportive fiscal policies from President Trump. Earnings for S&P 500 companies are projected to increase by about 10.67%. However, inflation remains a concern, and potential tariff implementations could pressure prices. Most analysts suggest moderate growth for the year ahead, with predictions for the S&P 500 to reach between 6,000 and 7,000 points by year-end.

Stock Forecasts

SPY

Positive

Investor optimism is backed by strong economic fundamentals and projected earnings growth, although inflation and valuation concerns persist.

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The S&P 500 is set to post back-to-back annual gains of more than 20 percent for the first time since the late 1990s. Analysts expect stocks to continue rising in 2025.