Stocks just had a banner year, and Wall Street’s optimistic that U.S equities will continue to rise in 2025.
The S&P 500 gained 23% in 2024 after rising 24% the previous year, its first two-year stretch of +20% returns since the late 1990s. The gains aren’t expected to be as robust in 2025, but market watchers say the outlook is generally positive.
Here is some of what analysts say you can expect from the stock market in the year ahead.
Corporate earnings are expected to be the main driver of stock returns in 2025.
Earnings growth has been narrow over the last two years. Surging spending on artificial intelligence and a raft of cost cuts have helped mega-cap tech profits to soar. Meanwhile, the S&P 493—or the S&P 500 without the Magnificent Seven—saw profits shrink in 2024, though JPMorgan analysts expect the group to record double-digit earnings growth in 2025.
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