Wall Street issues its most bullish S&P outlook yet for 2025

Published On Nov 25, 2024, 4:47 PM

Wall Street has revised its outlook for the S&P 500, projecting it to reach 7,000 by the end of 2025, representing a nearly 17% increase from current levels. This bullish forecast from Deutsche Bank's chief global strategist, Binky Chadha, is based on a strong macroeconomic backdrop characterized by low unemployment and resilient economic growth. Chadha suggests that strong equity inflows are linked to this growth and an elevated risk appetite among investors. He also notes that sectors like Financials, Consumer Cyclicals, and Materials could lead this growth, as opposed to the traditionally dominant megacap tech stocks. Furthermore, a favorable shift in the regulatory environment and increasing corporate confidence could boost capital markets and M&A activity.