Yahoo Finance Chartbook: 44 charts that tell the story of markets and the economy to start 2025

Published On Jan 28, 2025, 5:58 AM

The Yahoo Finance Chartbook highlights key trends in the markets and economy as it starts 2025. The article discusses the sustained optimism in the S&P 500, noting that after a robust two-year performance, most analysts do not foresee an end to the bull market, with a key emphasis on corporate earnings and potential economic growth. The Federal Reserve's recent interest rate cuts and speculation about future fiscal policies, especially under President Trump's administration, introduce a new level of uncertainty. Additionally, the article indicates a potential regime shift in awareness of market dynamics, suggesting a more cautious but positive outlook for stock performance over the coming year.

Stock Forecasts

SPY

Positive

With the Federal Reserve's proactive rate cuts and overall confidence in corporate earnings, the stock market is likely to experience continued upward momentum. Additionally, the accommodative monetary policy and expected strength in the economy could support further gains in stock prices.

QQQ

Positive

Given the anticipated strong performance of the S&P 500 and optimism about ongoing market trends, the Invesco QQQ ETF, which is heavily invested in technology stocks, is expected to benefit from continued growth in the tech sector.

TLT

Negative

With investors watching Treasury yields closely and the risk of interest rate increases, stocks may face headwinds if yields rise significantly. Thus, investors could consider defensive positions in fixed income or lower-risk equities as a hedge against potential downturns stemming from monetary policy changes.

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