The S&P 500 (^GSPC) is expected to see a significant boost heading into Q1 2025, per multiple analysts at Bank of America and JPMorgan. The index has had solid growth year-to-date, climbing 26% as a whole. The emerging tech market, led by the AI revolution, has taken over the US stock market, sending the S&P skyward this year.
According to trade experts at JPMorgan, the index still has room to push higher by the end of this year. Derivatives analysts at the bank say the most popular options trades are wagering the US equity benchmark will hit 6,200 to 6,300 this month. This implies a further advance between roughly 3% and 4% before the year is over, based on Friday’s close of around 6,032.
“We remain tactically bullish into year-end given the positive macro environment, earnings growth, and a Federal Reserve that remains supportive of markets,” Head of Global Market Intelligence Andrew Tyler wrote Monday in a note. “We think it’s sensible to play the market’s momentum and see low pullback potential until mid-January.”
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S&P 500 To Continue Positive Growth In 2025: Per Bank of America
Wall Street strategists are generally optimistic about the S&P 500’s performance to close out 2024. The trading desk at Goldman Sachs, for example, estimates the S&P 500 will near 6,300 before the start of 2025 as well. However, as Bank of America predicts, this solid performance may continue beyond the start of the new year.
According to Bank of America’s equity and quantitative strategy team, a strong 2025 is in the S&P 500 index’s future. In a research note released on Monday, BofA’s equity strategy team issued a 6,666 year-end target for the S&P 500 in 2025. This represents a roughly 10.5% gain from current levels. Part of the firm’s bullishness comes from an expectation for strong economic growth, with BofA’s economics team projecting the US economy to grow at an annualized rate of 2.4% net year.
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“We see more opportunities in stocks than the index,” wrote Savita Subramanian, head of BofA’s equity strategy team. “In particular, we like companies with healthy cash return prospects and a tether to the US economy: large cap Value stocks.”
At press time, the S&P 500 is up 14 points, sitting at 6,047.06.