The benchmark index is on track to hit 6,300 over the next 12 months, the strategists predicted, implying another 8% upside from current levels. „We took a clean sheet look at the equity market and came away with the same smh (shaking my head) emoji reaction. Despite all the soft-landing and Fed rate cut optimism, the S&P 500 up almost 40% y/y has simply over-shot,“ Bannister said. Strength begets more strength, and that’s a big part of the BMO strategist Brian Belski’s bullish outlook for stocks into 2025. Here’s what Wall Street is saying about the prospects for the stock market heading into 2025 and beyond. Stocks are trading near record highs, with the S&P 500 on track to deliver back-to-back annual gains of more than 20%. Inflation is falling, productivity is rising, and the Federal Reserve is easing monetary policy, which should act as a tailwind for economic growth.

  • Belski increased his year-end S&P 500 price target to 6,100 from 5,600 last month, making him one of the most bullish strategists on Wall Street.
  • The enthusiasm surrounding AI and its potential productivity boost helped power the major averages to a string of record highs throughout the year.
  • If they are higher, they pull down economic growth (via higher borrowing costs) and equity valuations,” Jason Ware, chief investment officer of Albion Financial Group in Salt Lake City, told me.
  • Cisco’s report scheduled for Wednesday comes as the tech equipment maker raised its full-year forecast despite reporting declining revenue.
  • While the 10-year US Treasury yield has softened this year and dipped back below 4.50%, a swift rise toward 5% could trigger a stock sell-off.
  • His remarks come after the Fed held interest rates steady in January after cutting rates in the prior three meetings as the central bank pointed to a strong job market and concerns over rising inflation.
  • The Consumer Price Index (CPI) out Wednesday showed headline consumer inflation rose more than forecast in January.

Inflation Trends And Fed Policy

On the one hand, most see the gains set to continue, pushing past election uncertainty and continuing to lift stocks into 2025. Beyond that timeline, however, uncertainty builds and outlooks get murky. The Atlanta Fed’s GDPNow tracker on Friday showed an expectation of 3.3% economic growth for the quarter. The iPhone maker reports on Thursday and is expected to unveil software and hardware updates this week, including access to highly anticipated Apple Intelligence features xm forex review with the iOS 18.1 update. The odds of another 25 basis point cut at the Fed’s January meeting have dropped to 29%, down from 69% a month ago. Inflation was slightly higher year-over-year in October compared to the prior month, but was on par with economists‘ expectations.

According to the CME FedWatch tool, markets expect the Fed to deliver 25-basis-point cuts at the November and December meetings. They said recent storms and strikes could weigh on job growth, making the report difficult to interpret. After a blockbuster September jobs report, the stakes are high for October’s jobs data on Friday. The flurry of key data releases starts with third-quarter GDP on Wednesday.

Intel’s misfortunes also resulted in the ousting of CEO Pat Gelsinger earlier this month. The broad market index closed 0.43% lower at 5,881.63, while the Nasdaq Composite dipped 0.9% to 19,310.79 on 2024’s final day of trading. The Dow Jones Industrial Average slipped just 0.07%, or 29.51 points, lower to 42,544.22. Nearly three out of five investors, or 57.4%, believe tariffs will slow the economy and raise prices, according to a special question asked by AAII. About a https://www.forex-world.net/ fifth, or 20.4%, think they’ll have „a temporary impact but not a lasting one,“ while 12.5% said tariffs „will eventually lead to a stronger domestic economy.“ About 10% saw no to limited effect, or had no opinion. On Thursday, Trump talked about a potential meeting with Russia and China in the future in which all three would agree to slash military spending.

It’s a huge week for the stock market. Here’s what to watch for.

While no details were given, Trump said that these are necessary to ensure „that we’re treated evenly with other countries,“ according to Reuters. The Dow Jones Industrial Average fell 4.9%, meanwhile, and only the tech-heavy Nasdaq Composite managed to finish higher, rising about 1.4% month to date. MongoDB and Biogen have slumped at least 40%, while Dexcom and Microchip Technology have shed at least 36% each.

Stock futures are little changed

„The spread between Mag-7 and S&P 500 ex Mag-7 earnings growth has reduced to the smallest in the last 7 quarters.“ The influence of the „Magnificent Seven“ on earnings growth among U.S.-based companies is dwindling by the quarter, according to JPMorgan. The S&P 500 was little changed on Friday in a pause from a strong performance this week, as investors weighed the latest on the global trade and inflation fronts. Finally, stock market valuations above historical levels are an ongoing concern, Charlie Ashley, portfolio manager at Catalyst Funds, said.

CVS stock pops after topping earnings expectations

  • The Fed’s preferred inflation gauge is expected to show that prices rose by 2.1% year over year in September after coming in at 2.2% in August.
  • For Investopedia, she reviewed the best finance books of the year, and for the British Medical Journal, she traveled to South Sudan to cover Guinea-worm eradication efforts spearheaded by the Carter Center.
  • On Wednesday, Apple said it released an Apple TV+ app for Android phones.
  • Bond yields were little changed, with the 10-year Treasury yield up one basis point to 4.449%.
  • Nucor’s short interest rose by $61 million over the past 30 days while Carpenter’s added $49 million.

Nucor’s short interest rose by $61 million over the past 30 days while Carpenter’s added $49 million. S3 says „the largest shorts in the worldwide Metals & Mining industry are dominated by steel stocks.“ In addition to „calmed nerves“ around Musk’s task force called the Department of Government Efficiency, he said the report showed a strong data center pipeline and growth either in line with or ahead of expectations. Some of the bricks the make up the wall of worry right now include the potential for a trade war following the Trump administration’s tariffs, an ever-growing government spending deficit, and uncertainty around the longevity of the AI tech trade. „Unfortunately, sometimes Mr. Market can lose his footing on the way up,“ Steve Sosnick, chief strategist at Interactive Brokers, told Business Insider. „Investors should consider allocating to other indices where we view the current landscape as favorable for strong forward performance,“ strategists said, highlighting in particular the equal-weight S&P 500 and the mid-cap S&P 400 index.

Asia-Pacific markets mixed as investors assess Trump reciprocal tariffs plan

Markets see an 82% chance that the central bank will trim interest rates another quarter-point next month, up from 59% on Tuesday, according to the CME FedWatch tool. Pinterest (PINS) stock surged 19.1% after the visual search and discovery platform reported revenue above $1 billion for the first time ever in its fourth quarter. Adams adds that the report will do little to change the Fed’s plans to hold interest rates steady in the near term and the market seems to agree. According to CME Group’s FedWatch tool, futures traders are now pricing in a 92% chance the central bank will not cut rates at its next meeting in March, up from 84% one day ago. Stocks opened higher Friday following the January jobs report but swung lower after the latest consumer sentiment data showed inflation worries are rising. President Donald Trump’s promises for retaliatory tariffs only elevated investors‘ anxiety.

Employment Rates And Consumer Spending Trends

In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis. Ahead of another busy week that includes several blue chip earnings and the next Consumer Price Index (CPI) report, investors may want to keep an eye on the outcome of Sunday’s big game to determine the longer-term direction of the market. The ICE U.S. Dollar Index enters the final day of December up 6.61% in 2024, which will mark the greenback’s third positive year in four. All of those gains have come in the fourth quarter, when the index is up 7.20%, which is on track to be the best quarterly performance since 2015.

Kraft Heinz (KHC) shares slid after the packaged food maker’s 2025 profit outlook fell short. But CVS Health (CVS) stock got a boost as investors welcomed a smaller drop in quarterly profit than expected. The Consumer Price Index (CPI) out Wednesday showed headline consumer inflation rose more than forecast in January. „Core“ prices — which strip out the more volatile costs of food and gas — reversed the previous month’s easing, up 0.4% over last month and 3.3% over last year, with both rates higher than in December.

Powell is scheduled to testify before Congress this week, where the Federal Reserve chair will likely focus on interest rates and the current economic environment. On Wednesday, market watchers will get their first look at January inflation with the scheduled release of the Consumer Price Index (CPI), while wholesale, import, and export pricing data is also expected Best forex courses this week. The bank’s chief stock strategist recently increased his year-end S&P 500 price target to 6,000 on the prospect of further growth in corporate earnings. If job growth remains high, that could reduce the need for more rate cuts.