The S&P 500 index (^GSPC) is expected to see a significant boost heading into Q1 2025, per multiple bank analysts on Wall Street. Several targets for the index have been raised as the top US stocks continue to rally higher. The technology sector will play a big role in the index’s performance come the new year. Analysts at big banks Goldman Sachs and Morgan Stanley are bullish, recently revealing all-time high predictions for the S&P 500 in 2025.
Leading global banks, institutional funds, and financial analysts have bullish price predictions for the S&P 500 index in 2025. According to the forecasts, the index could rise further and not look back at its current 6,050 level in 2025. This makes the stock market a prime investment next year that could generate stellar investor profits.
Goldman Sachs and Morgan Stanley Predict New ATH for S&P 500 Next Year
According to Goldman Sachs’ chief U.S. equity strategist, David Kostin, the S&P 500 index is expected to hit 6,500 by the end of 2025. This would establish a new all-time high for the index, rising 11%. The GS analysts also believe that there will be more shares of the pie for companies outside of the Magnificent-7. Indeed, analysts anticipate that the dominance of these seven tech stocks — Apple Inc. (AAPL), Microsoft (MSFT), Amazon.com Inc. (AMZN), Alphabet Inc. (GOOGL), Meta Platforms Inc. (META), Nvidia Corp. (NVDA) and Tesla Inc. (TSLA) — may taper off in 2025. While these companies have driven significant market gains in recent years, analysts suggest that their influence might narrow as broader sectors contribute more evenly to market growth.
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As for Morgan Stanley, the bank is also anticipating a rise to $6,500 for the S&P 500 index in 2025. “Looking forward to 2025, we think it will continue to be important for investors to remain nimble around market leadership changes, particularly given the potential uncertainty that the recent election outcome introduces,” strategists led by Michael J. Wilson said in a note. Morgan Stanley also cites additional potential Fed interest rate cuts in 2025 to play a role in the stock market boom. Such cuts could provide further support for economic growth and market stability “This is also a reason why we are maintaining a wider than normal bull versus bear case skew—base case: 6,500; bull case 7,400; bear case 4,600.” Wilson continued.
At press time, the S&P 500 index sits at 5,894.91. It is down 2% in the past 30 days, however, it also gained 23% in 2024, signaling plenty of potential for the new year.