Wall Street forecasts 'normal' year for stocks in 2025 after historic rally

Published On Nov 18, 2024, 1:21 PM

Wall Street strategists expect a return to more normal stock market conditions in 2025 after experiencing two consecutive years of significant gains. They forecast moderate returns for the S&P 500, projecting an increase of 9-11% next year. Major firms like BMO Capital Markets and Morgan Stanley have set target levels for the S&P 500 at 6,700 and 6,500, respectively. This stabilization might indicate broadening opportunities across various sectors and a potential for stock picking, despite the possibility of lower overall index returns compared to the explosive growth seen in previous years. Key factors influencing this outlook include expectations of a stabilizing economy and Federal Reserve interest rate actions.